Rising Global Food Prices Expected

The Food and Agriculture Organization (FAO) expects global food price inflation to worsen in 2027 due to shipping disruptions linked to the war and drought caused by the El Niño phenomenon, which reduces cereal supplies. Rice prices in Indonesia have experienced unprecedented increases, bread costs in Egypt have risen by a quarter, and sugar prices in India have reached their highest levels ever, all adding significant pressure on consumers—especially in low- and middle-income countries where food expenses constitute a large portion of household budgets. Cereal supplies have faced multiple setbacks due to attacks on infrastructure in the Black Sea region, the U.S.-Israeli war on Iran, and rising fuel and fertilizer prices, which led to wheat prices increasing by more than 30% and rice prices by 10-13% in 2026. These trends are expected to keep exerting pressure on global markets in the coming period.

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