Food inflation so far has been driven first by a two supply shocks. Further food inflation requires a political shock.
Food prices have recently touched all time highs. The speed of the increase has also been very noteworthy.
The move higher in food prices so far, has been driven by two shocks. The first shock was African Swine Flu, which decimated Chinese pig herds in 2019, but have been rebuilt since then.
The collapse in the pig herd caused Chinese pork prices to rise dramatically. At its peak it was 6 times higher than US prices.
