Food & Agriculture
We have seen a steep rise in core food commodity prices over the past two years as a result of supply shortages. This rise was caused primarily by the domino effect of COVID-19 pandemic disruptions, supply chain issues, the Russia-Ukraine conflict, and rising interest rates – all contributing to the cost of living crisis.
High inflation rates for food in 2022 are expected to continue and peak in Q1/Q2 of 2023, with inflation rates then expected to stabilise in Q3/Q4 of 2023, according to Morgan Stanley.
Rising food costs are expected to significantly impact household budgets, with subsequent knock-on effects on consumer spending across all sectors, compounding the impacts of recession.