Published: · Region: Global · Category: markets

FAO Warns Wars and El Niño Are About to Squeeze Global Food Prices Again

The UN Food and Agriculture Organization’s chief economist says the world is on the verge of another food inflation surge as wars in Iran and Ukraine combine with El Niño-driven weather shocks. For import-dependent countries and low‑income households, a new spike in prices would revive the trade, subsidy, and stability pressures many hoped were fading after the last crisis.

A familiar anxiety is returning to global food markets: the fear that war and weather could once again make basic staples unaffordable for millions. On August 5, the chief economist of the UN Food and Agriculture Organization (FAO) warned that the world is nearing another bout of food inflation, driven by the combined impact of conflicts in Iran and Ukraine and the El Niño climate pattern. He described a “perfect storm” of higher production costs, disrupted trade and lower crop yields that could push prices sharply higher. The FAO warning does not yet come with specific price forecasts, but the ingredients it cites are concrete. In Ukraine, a major exporter…

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