Organization of Economic Cooperation and Development (OECD) together with the UN predicted a slowdown in the rise in food prices. Bloomberg transmits that this is due to a decrease in demand and build-up production.
The OECD and the UN report says that in the next couple of years, prices for food with an amendment to inflation may decrease and will remain almost unchanged until 2030, since the demand for grain and fish has become more moderate, and raw materials are growing.
It is expected that the increase in demand for agricultural products in the near decade will be 1.2 percent per year – one percent less than in past ten years. In turn, the production volume may increase by 1.4 percent due to developing countries, if invested in infrastructure, research and competent allocation of resources. Nevertheless, in North America, Western Europe and Central Asia, production will slow down due to strict environmental policy.
Organizations believe that in the short term, production will work out when countries will remove restrictions on international trips, and more agricultural workers will return to farms.
The world costs for food jumped over the last year to a nine-year-old maximum. Among the reasons – caused by a pandemic crisis, the loss of the crop of them, for drought in South America and record purchases of the grain of China. All rapidly rose in price: from the dough for pizza to meat and coffee. The jump in food prices is danted with an increase in the number of starving and at the same time faster inflation. It can push central banks to tighten stimulating measures to recover after a pandemic.