International credit rating agency Fitch Ratings has stated that global food inflation is likely to fall sharply in 2023.
In the statement made by the credit rating agency Fitch, it was noted that the sharp decline in grain prices in recent weeks increased the expectation for a decrease in food inflation next year.
In the statement, it was stated that global food inflation is likely to fall sharply in 2023.
Recalling that grain prices rose due to supply concerns at the beginning of the war in Ukraine, it was noted that there was optimism that other countries would accelerate production.
In the statement, it was stated that Ukraine’s grain shipments this week could contribute about 20 million tons to the global supply.
RECESSION FEARS RISE
Pointing out that global macro factors also lowered grain prices, it was stated in the statement that the “hawk” policy tightening of the US Federal Reserve (Fed) increased recession fears and led to expectations of a significant global economic slowdown in the next year.
In the statement, it was stated that the Fed’s monetary policy stance raised the dollar index to the highest level in 20 years.
In the statement, it was stated that the Fed’s monetary policy stance raised the dollar index to the highest level in 20 years. Considering the inverse relationship with commodities, it was noted that the increase in the US dollar contributed to a large decline in agricultural commodities.
In the statement, it was stated that the slowdown in global industrial production is in line with the expectation of a decrease in commodity prices in the coming period, but it was reported that upside risks to food prices were observed.
The statement noted that although fertilizer prices have moderated, rising natural gas prices in Europe to all-time highs could reverse this trend and affect crop yields.
Source: Haberturk / Translated by Irem Yildiz