Food Inflation Spikes Globally

June 7, 2021
Food prices globally rose in May for the 12th month in a row, reaching a 40% year-over-year increase and sparking concern among economists and others.

Food prices globally rose in May for the 12th month in a row, reaching a 40% year-over-year increase and sparking concern among economists and others.

May food prices rose 4.8% from April, the largest month-to-month increase in food prices in more than a decade. Demand is rising across the world for meat, cooking oil and other commodities. Factors include a surprisingly high demand for corn from China and drought in Brazil, a major source of corn exports. In the U.S., overall food prices were up 2.4% in April.

Cooking oil especially has been subjected to market pressure. Palm oil supplies are at their lowest level in four years, due partly to labor shortages related to the pandemic. And soybean oil prices have risen almost 70% this year, reaching an all-time high last week, due in large part to a renewed demand for soy oil in biofuels.

ADM and other major producers are ramping up their soy oil production capacity. Oil processing capacity is expected to nearly double this year from last.

Sponsored Recommendations

Kaeser is the world’s leading air systems specialist and offers a full range of compressed air solutions for almost any application. From industrial compress...
Take a moment to see the scope of Kaeser's commitment to innovative system designs that guarantee ultra-reliable compressed air, easy maintenance, and greater efficiency.
Ventilation has a huge impact on the ambient temperature in the compressor room and is often the missing link to temperature regulation issues. Here are four factors to consider...
Learn how to get a smart, reliable, energy-efficient compressed air system delivered in a turnkey, weatherproof and temperature-controlled enclosure that needs little or no onsite...