A UN FAO report reveals EU farm subsidies, particularly for starchy crops and meat, have increased healthy diet costs by 36% in Europe from 2021-2025. This makes fruits and vegetables disproportionately expensive, impacting affordability for citizens.
UK inflation held steady at 2.8% in May, defying expectations of a rise. This suggests the Middle East conflict's impact on living costs may be less severe than feared, despite high fuel prices. Economists are downgrading inflation forecasts and questioning future interest rate hikes.
A potential US-Iran peace agreement could significantly benefit African economies by stabilizing global financial and commodity markets. Lower oil prices, reduced freight costs, and smoother trade flows would ease imported inflation, particularly for energy, fertilizers, and food, acting as a stimulus and food security package for many nations.
The US-Israel war against Iran has caused significant global economic disruption, leading to thousands of deaths, millions affected by price hikes, and widespread uncertainty. The conflict's impact rivals major historical events, stalling investment and employment, with costs ranging from military hardware to unquantifiable loss of life and opportunity.
Wholesale Price Index (WPI) inflation in India rose sharply to 9.68% in May from 8.26% in April, driven by escalating prices of fuel, power, manufactured goods, and food items. The surge reflects the economic impact of the West Asia conflict and disruptions in global shipping routes.
Staple food prices are surging in Mexico, impacting low-income households who spend nearly 70% of their income on food. Rising fuel, agricultural costs, global supply disruptions, and extortion are driving up prices, forcing consumers to ration and vendors to cut margins.
President Trump announced a delay of two Biden-era EPA refrigerant rules, estimating $2.4 billion in savings for businesses and consumers. The move targets potent greenhouse gases used in refrigeration, with the administration claiming it will lower grocery prices, though the extent to which companies will pass savings on remains unclear.
Walmart expects sales growth to slow significantly in Q2 due to rising fuel prices, driven by Middle East conflict. The retailer also warns of potential food price hikes if the Strait of Hormuz remains closed, impacting fertilizer supply. Consumer spending is expected to face increasing strain as the benefit of tax refunds diminishes.
UK government ministers are urging supermarkets to voluntarily freeze prices on essential groceries like eggs, bread, and milk. However, they will not impose mandatory price caps, a proposal met with strong criticism from industry figures who warn of unintended consequences and forced losses.
The UK government is reportedly urging supermarkets to voluntarily limit price rises on key groceries in exchange for eased regulations. Retail industry sources suggest the plan, which the British Retail Consortium calls "1970s style price controls" and warns would force retailers to sell at a loss, aims to help families with costs.
Egypt grapples with soaring tomato prices, sparking debate on whether exports are to blame. Experts urge balanced policies to protect local consumers while securing vital foreign currency through exports, as the nation also pushes for renewable energy expansion.
UK Foreign Secretary Yvette Cooper warns of a global food crisis due to frozen fertiliser shipments via the Strait of Hormuz due to the war in Iran. She urges immediate action to free up supplies, highlighting impacts on developing nations and the need for global partnerships.
Disruptions around the Strait of Hormuz, linked to the US-Israeli war on Iran, are escalating global food prices. Potato futures have surged over 700% in a month due to concerns over fertilizer and energy costs, impacting global food security.
Russia's annual inflation in April 2026 stood at 5.58%, a slight decrease from 5.86% in March. Consumer prices rose 0.14% month-on-month, driven by a 0.47% increase in services, while food prices saw a 0.2% dip.
India's retail inflation remains largely unaffected by West Asian conflict, with SBI retaining its FY27 forecast at 4.5%. While imported inflation eased slightly, rising food prices, particularly tomatoes, are a key driver. Future trends hinge on energy price pass-through and summer crop progress, with the RBI flagging upside risks.
India's retail inflation rose to 3.48% in April, a one-year high, driven by higher food prices (4.20% CFPI) and broader household essential price pressures, with rural inflation outpacing urban areas.
Rolling coverage of the latest economic and financial newsUK bond prices have now rallied, after Keir Starmer pledged not to resign and analysts suggested Labour was not doing as badly as feared in the council elections.The yield (or interest rate) on benchmark 10-year bonds has dropped by 2.6 basis points (0.026 of a percentage point) to 4.894% this morning.No, I’m not going to walk away and plunge the country into chaos. We were elected to deal with these challenges and that’s what we will do. Continue reading...
Rolling coverage of the latest economic and financial newsUK bond prices have now rallied, after Keir Starmer pledged not to resign and analysts suggested Labour was not doing as badly as feared in the council elections.The yield (or interest rate) on benchmark 10-year bonds has dropped by 2.6 basis points (0.026 of a percentage point) to 4.894% this morning.No, I’m not going to walk away and plunge the country into chaos. We were elected to deal with these challenges and that’s what we will do. Continue reading...
Rolling coverage of the latest economic and financial newsNewsflash: Global food prices have risen for the third month running, as the Iran war drives up the price of energy and fertiliser.The United Nations’ FAO Food Price Index (FFPI) shows that prices of a basket of food commodities rose by 1.6% in April, adding to price rises in February and March.The price increase was further supported by expectations of reduced wheat plantings in 2026, as farmers shift to less fertilizer‑intensive crops amid high fertilizer prices, driven by elevated energy costs and disruptions linked to the effective closure of the Strait of Hormuz.International palm oil prices rose for the fifth consecutive month in April, largely underpinned by prospective higher demand from the biofuel sector, supported by policy incentives in several producing countries and higher crude oil prices. Additional upward pressure stemmed from concerns over lower production in Southeast Asia in the coming months.The drop in April was mainly driven by expectations of ample global supplies in the current season, reinforced by improved production prospects in key Asian producing countries, notably China and Thailand. The onset of the new harvest in Brazil’s key southern growing regions under favourable weather conditions further contributed to the overall decline in international sugar prices. Continue reading...
Powerful property and farming firm Grosvenor Group says knock-on effect of Iran war could arrive next yearFertiliser shortages caused by the Iran war have driven up costs for UK farmers by up to 70% and will have a “dramatic” impact on food prices globally next year, according to one of Britain’s most powerful property and farming companies.Mark Preston, executive trustee of the 349-year-old Grosvenor Group, controlled by the Duke of Westminster, said fertiliser “was already quite expensive” before the 50% to 70% surge in prices since the start of the Iran war in late February. Continue reading...
Powerful property and farming firm Grosvenor Group says knock-on effect of Iran war could arrive next yearFertiliser shortages caused by the Iran war have driven up costs for UK farmers by up to 70% and will have a “dramatic” impact on food prices globally next year, according to one of Britain’s most powerful property and farming companies.Mark Preston, executive trustee of the 349-year-old Grosvenor Group, controlled by the Duke of Westminster, said fertiliser “was already quite expensive” before the 50% to 70% surge in prices since the start of the Iran war in late February. Continue reading...
UK food prices could be 50% higher by November compared to the start of the cost-of-living crisis five years ago, according to ECIU analysis. The rate of food inflation has nearly quadrupled, with staples such as olive oil (+113%), beef (+64%), eggs (+59%), chocolate (+58%), frozen vegetables (+55%), and pasta (+50%) seeing the sharpest rises. Climate-driven extreme weather, global supply disruptions, and volatile energy markets have compounded pressures, with households facing £605 average increases in food bills over 2022-2023.
Food prices are on track to be 50% higher in November 2026 than at the start of the cost of living crisis in 2021, according to ECIU thinktank research. Climate and energy shocks have driven an almost quadrupling of food price growth, with costs rising in five years at roughly the same rate as the previous two decades. Staples including pasta, chocolate, eggs and beef are significantly more expensive, while household food bills rose by £605 over 2022-2023.
