Governments around the world are sounding the alarm on food Inflation as crops from wheat to coffee beans have been wiped out by bad weather.
Droughts, frost, and heavy rains have decimated crops from Vietnam to the U.S. and South America, leading to tighter supplies and pushing up prices for many agricultural staples.
Bloomberg News reports that its gauge that tracks nine farm commodities has turned higher on the year and is headed for its largest weekly gain since July 2023.
Analysts say the impact of bad weather on crops could result in consumers around the world paying more money for products ranging from bread to cereal in coming months.
Wheat futures traded on the Chicago Mercantile Exchange are at their highest level in nearly a year as poor weather has hurt crop supplies from Australia to Russia.
At the same time, prices for Arabica coffee beans and orange juice are near all-time highs as bad weather harms those products.
Asian rice prices are at a 15-year high currently, and the price of cocoa, the active ingredient in chocolate, has risen 10% in the last week alone as flooding has wiped out that crop in Africa.
Analysts blame the current situation on climate change and expect prices to remain elevated for the remainder of this year and into 2025.
Governments from Brazil to Thailand, and in the U.S., have sounded the alarm on food inflation as prices steadily increase, harming consumers in the process.