Food prices set to drive 'inflation psyches' for some time to come

"Agricultural prices are notoriously difficult to forecast, not least because they are particularly vulnerable to shocks such as war and extreme weather events."

The war in Ukraine has led to wheat prices soaring by 50%, corn prices increasing by 30%. File photo

The significance of food prices around the world — even beyond the costs of petrol, gas, and oil — in driving "inflation psyches" has been singled out in a new analysis by a leading economist.    

Neil Shearing, who is group chief economist at Capital Economics, a major economics consultancy, said that energy prices may be grabbing the global headlines as global inflation soars, "but the current inflationary surge is also about what’s happening with global food supplies".