The United Nations has issued a stark warning that ongoing global conflicts are driving up energy and fertiliser prices, a dynamic likely to sustain food inflation for the foreseeable future.
The International Fund for Agricultural Development (IFAD) highlighted that these supply-side pressures could push millions into hunger by eroding purchasing power and increasing the cost of a healthy diet.
The linkage between geopolitical instability and agricultural input costs remains a critical risk factor for commodity markets.
As energy prices remain volatile due to tensions in key regions, the cost of producing fertiliser — an energy-intensive process — continues to rise.
This transmission mechanism directly impacts farm gate prices, which in turn feed through to consumer food baskets globally.
This development underscores the persistent vulnerability of global food systems to external shocks.