Food price inflation is accelerating globally (ex. China) and is now running at a faster pace than overall CPI. While weather and commodity price moves often explain food price moves the current pickup appears linked to the same pandemic related pressures raising core inflation. As a result it is a signal of broadening inflation pressures and a broadening drag on growth as bottlenecks and rising input costs generate a purchasing power squeeze. However, in contrast to 2010-11, most central banks are likely to view this as a transitory inflation impulse for now.

This podcast was recorded on September 8, 2021.

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