Certain global factors affect food prices across the world, and experts think the prices will continue to rise.
The food prices have increased across the world and experts believe that they will continue to shoot up. According to The Financial Times, there are certain global factors which affect food prices. As countries with dense populations prosper, their demand for food increases. Growing populations and rising incomes lead to food scarcity and prices rise up accordingly. Extreme climatic conditions also affect the food prices as it becomes difficult to predict the harvest. With droughts and poor harvests resulting in shortage of food, prices increase. And finally, the increase in costs of land, energy, seeds and fertilizers increase the production costs, most of which are passed onto the final price of the food for the consumer.
The US Department of Agriculture forecasts that the overall food prices will continue to rise between 4 to 7% over the coming years.