Food is about to get a lot more expensive. With Russia’s war in Ukraine triggering a supply shock in agricultural produce, the average price of wheat and fertiliser has surged by 88% and 77%, respectively, in the period 24 February to 14 March compared to January.
The price of metals has also risen sharply. Nickel, widely used in engineering, transport, and building and construction sectors, among others, has leapt more than 60% in the corresponding period.
The spectre of food insecurity looms large, especially in lower-income countries, while supply chains risk getting clogged up further. With energy prices also spiking, governments’ efforts to build resilience into their economies just got a lot harder.