He said with Russia and Ukraine both being major producers of a number of agricultural commodities, the invasion had reduced global supply and increased uncertainty.
Speaking at the event, Mr Bailey said: “Energy prices have had a large, indirect effect on food prices” and that “more than 1.5 percentage points of food price inflation can be attributed to higher energy costs in the food supply chain. This is significantly more than in other sectors of the economy.”
He spoke about how “farmers were right” when being sceptical about food price inflation easing quickly, saying that they were continuing to face higher costs of production. He also noted that farmers have told him they’ve found it hard to find the labour they need.
On recent uncertainty within the global economy, the Governor said: “Poor weather was undoubtedly a factor. Harvests have been poor in many of…
