Now Bloomberg’s food price index for the agricultural sector shows that it does not have to be as bad as feared. The index looks to have its biggest decline since 2011.
According to Bloomberg, the lack of exports from Ukraine can be offset by good harvests elsewhere. Australia in particular, which is one of the world’s largest wheat exporters, looks set to get big harvests this year. Harvests from Brazil also look good.
Even if the index indicates a relief, it may take time before it hits store shelves. Food price inflation is also dependent on the development of energy and oil prices.