In May, world food prices have made record growth over the past decade. According to the calculations of the monthly price index from the Food and Agricultural Organization of the UN, in May, this indicator rose by 40%. It is reported by Financial Times.
One of the factors of the sharp rise in food prices remains a growing demand for wheat and soy by China, which spots prices to increase. The rise in prices also influenced a strong drought in Brazil and the growing demand for vegetable oil as a raw material for the production of biodiesel.
It is noted that the global price increase in the world market will further strengthen food inflation in less developed countries.
The rise in food prices in the coming months will also be due to the growth of expenses of enterprises on salary to employees, as well as the increase in the cost of transportation and delivery of raw materials.
“The cost of transportation increases due to the rise in price of oil, and deliveries are overloaded. Therefore, there is a large pressure in the system, which pushes prices up,” Karoline Bein said from Capital Economics.