The UN Food and Agriculture Organization warned prolonged Middle East and
Russia-Ukraine conflicts, El Nifio-driven crop declines and rising input costs
could trigger a new round of global food-price inflation. FAO flagged rising
oil, fertilizer shortages in the Gulf, diesel shortfalls and extreme weather as
near-term cost drivers and said Strait of Hormuz disruptions would hit
agricultural inputs and logistics — Brent supports pumping, processing and
transport while natural gas is central to fertilizer production. FAO chief
economist Maximo Torero said commodity prices are beginning to rise and expects
food prices to start increasing by year-end, with larger gains next year;
pass-through to consumer prices typically takes about three to six months.
