Severe food inflation is very likely this year, although we do not know, exactly, how much. It is unclear whether there will be any grain at all from Ukraine and Russia. We also don’t know if farmers will find a way around the shortage of fertilizer or how much that solution will cost.
What we do know is that the Food Price Index, which tracks the international prices of basic food products was up 140.7 points last month, which equates to nearly 4% increase from January and 24.1% over last year.
So, food is already dramatically more expensive this year, than last year, and we know it will get worse.
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