Rising costs, quota policies, and disruptions in agriculture supplies have seen global food prices rise significantly. Historically, it is emerging markets the most affected by rising costs of food. This time, climate change disruptions and a rise in commodity prices come to join the mix
A tweet by the Bruegel organization showed export restrictions due to the invasion of Ukraine covering more than 16% of internationally traded calories, this is higher than the crisis of 2007-2008
This week, we saw a couple of EM nations raising fuel pump prices, the latest was seen in Brazil which already tracks a +40% jump in petrol prices in May
One main problem here is that EM countries lack the policy support seen in developed countries. The rise in food prices and lack of contribution from government policies can be filtered into social instability
Comments