Policy Backgrounder : - Global Food Prices and Inflation

The following are the key insights from the discussion. [...] Insights for What’s Ahead: • The current food price crisis resulted, in part, from the impact of the COVID-19 pandemic and its effects on supply chains and the impact of financial firms seeking an alternative to equity investments by investing in commodities. [...] The war in Ukraine greatly restricted the supply of grains and soybeans around the world, and Russia’s recent decision to pull out of the Black Sea Grain Initiative will likely exacerbate the impact of the war on food price inflation. [...] The war in Ukraine greatly restricted the supply of grains and soybeans around the world, and Russia’s recent decision to pull out of the Black Sea Grain Initiative will likely exacerbate the impact of the war on food price inflation. [...] Before the pandemic, the amount spent on food at home and outside the home was in rough balance.