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World Food Prices Approaching 2011 Peak

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  • The rise in inflationary pressures this year in both DM and EM economies has been mainly driven by the surge in fuel and food prices.
  • The Citi inflation surprise index reached a new record high in November as inflation continued to surprise positively in a number of countries.
  • This chart shows that the Food and Agriculture prices have been rising sharply in the past 16 months and are approaching their 2011 peak, which contributed to the Arab Spring.
  • Labor shortages combined with poor harvest (amid bad weather) and the elevated Covid uncertainty have been among the major drivers of food prices (though food prices' drivers are known to be complicated).
  • Are Food prices set to reach a new record high over the winter?

Source: Bloomberg/MNI

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