Food inflation in rich countries has fallen to its lowest level since February 2022

The statistics relate to 38 industrialized OECD member countries. Most of them are members of the European Union, in addition, the United States, Australia, Turkey, Colombia, Canada, Great Britain, Japan, South Korea and others are members of the organization.

The annual increase in food prices in these countries was 5.3% compared with 6.2% a month earlier, which is significantly lower than the peak of 16.2% in November 2022. Food prices skyrocketed in 2022 due to rising energy prices and declining trade volumes caused by sanctions. This was happening against the backdrop of widespread problems due to drought and supply chain disruptions that occurred due to the coronavirus pandemic.

"Supply chains have fully normalized, gas prices have fallen to a level that is historically considered more normal, and grain exports from Ukraine have resumed through the Black Sea corridor," said Tomasz Vieladek, economist at T Rowe Price investment company. He suggested that global food disinflation would now continue.

According to the latest Eurostat estimates, the annual food inflation rate in the eurozone reached 2.7% in March. This figure has fallen below the 3% level for the first time since November 2021.

The European Central Bank now has to decide whether to consider this the "last gasp of the inflation monster" before reaching the 2% target, Bloomberg noted.