Each month, the UN’s Food and Agriculture Organization (FAO) releases a monthly food price index. The release on 3 June showed that food prices have surged by 40%, the largest rise since 2011. The impact of this food price rise will grievously hit developing countries, most of whom are major importers of food staples.
Prices rise for a range of reasons, the current rise largely fuelled by the collapse of sizeable sections of the global economy during the pandemic. Warnings of general inflation due to lockdown-related pent-up demand, shipping bottlenecks, and oil price increases loom over richer states, which–due to the power of the wealthy bondholders–have few tools to manage inflation, and by poorer states, which swirl in a cataclysmic debt crisis.
Rising food prices come at a time when unemployment rates in many parts of the world have skyrocketed. On 2 June, the International Labour Organisation (ILO) released its annual World Employment and Social Outlook: Trends 2021 report, which showed, as expected, that the pandemic-related economic collapse has meant the loss of hundreds of millions of jobs and working hours.