Bloomberg reports that a surge in food prices is hurting developing economies
Even a short spasm of food inflation can be damaging for the world’s poorest, who are rarely more than a few meals away from hunger. So the current spike in food prices, examined in detail should be setting off klaxons everywhere.
The cost of food imports, which feed four-fifths of the world, is expected to rise to $1.7 trillion this year, according to the United Nations’ Food and Agriculture Organization. The burden is not distributed equally: The bill for emerging economies will jump by more than a fifth, compared to a 6% increase for wealthier countries. And remember, food represents a far larger portion of domestic spending in developing countries, which have been disproportionately hit by the Covid-19 pandemic.
The consequences? Lives are quite literally at stake, and those who endure chronic food shortages often suffer awful long-term damage to their bodies and minds. Even worse, food shortages can lead to to violence and political instability.