BCA Insights

Food-Price Inflation To Moderate

Written by BCA Insights | May 3, 2023 11:27:00 AM

Grain prices are expected to fall by 10% in 2023, due to the dissipation of war-related price shocks to fertilizer markets and increased production in major grain-producing countries. This will provide some relief to persistent food-price inflation globally, which is expected to ease in 2023. However, higher natural gas prices will keep fertilizer prices from plunging, and the EU will continue to set the marginal price for natural gas globally.