The UN uses a wide index of global food prices, which has been rising for the past 12 months.
During the pandemic, difficulties in production, labour, and transportation impacted suppliers. Concerns about broader inflation and how increasing grocery bills could affect the global economic recovery are mounting. The Food and Agriculture Organization of the United Nations (FAO) keeps track and latest prices of food prices around the world, including cereals, oilseeds, dairy products, meat, and sugar to constantly keep a record of the variations in prices. According to the index, food prices increased 39.7% year over year in May, the largest month-on-month increase since October 2010.
Experts had predicted that as economies emerge from their state of emergency, strong demand and low production will result in rising inflation. Some industries, on the other hand, may make a big comeback. Global cereal production is expected to reach new highs this year, according to the FAO, which could assist to relieve upward price pressures.
Inflation, on the other hand, tends to encourage customers to buy things sooner and makes it simpler for businesses to raise salaries. Both of these factors contribute to economic growth. The central banks of most countries aim for inflation to be between 2% and 2.5 per cent.
