Jul 27 2023
After reaching the highest levels in 40 years in the US and Europe in the last year, food inflation has finally slowed. Over the past two years, macroeconomic policy, supply chain disruptions brought on by the COVID-19 pandemic, and commodity price spikes driven by the war in Ukraine have all been pointed to as inflation drivers. While all of these developments have played a role, growing pressures on the food system were already in place even prior to 2020. Now, with prices stabilizing, the experience of the last few years indicates that food prices will see greater volatility going forward.
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