Will Food Inflation Ease?

It is necessary to prepare an adequate budget both to maintain food production and to intervene in the market. The fiscal burden of managing food inflation may increase but the positive effect will be significant.

The World Economic Forum (WEF) Davos 2023 reminded us that one of the 10 global risks that will haunt 2023 until the medium term is the risk of food inflation.

Judging from the food price index issued by Food and Agriculture Organization (FAO), world food prices indeed declined. Prices returned to the levels seen before Russia’s invasion of Ukraine. However, this price level is still above the one before the COVID-19 pandemic. This high price level occurs for all sub-commodities such as tubers (cereals), meat, milk, vegetable oil and sugar.