In 2023, global economies will continue to face multiple macroeconomic headwinds, including geopolitical uncertainties, inflation and tightened financial conditions. Global economic growth is expected to further slow, while cities will witness subdued consumer spending growth.
Trade tensions and major disruptions in global supply chains have pushed investors to look for alternative business locations. The regional bloc of the Association of Southeast Asian Nations (ASEAN) is increasingly viewed as a prospective option for new investments thanks to trade liberalisation, rapid digital advancement and cost advantages.
We have identified key factors that will continue to shape food commodity markets, including commodity price volatility, uneven development in food demand, shifts in global supply chains, climate change and sustainability pressures.
Food crisis is brewing in 2022, with wheat supply and pricing playing a major role in it. Soaring agricultural input prices, increasingly unpredictable weather conditions during harvests and the war in Ukraine are all pushing up the key commodity price and in turn leading to inflation across most staple foods.
New construction projects are expected to rely more on wood products amid growing interest in construction from mass timber. As wood requires less energy to process compared to other materials such as steel or concrete, it is also increasingly viewed as a renewable, low-carbon and energy-efficient option for buildings.
Staple foods have come under intense pressure from inflation in recent times, and the drivers show no immediate signs of easing. While costs were already rising across the board, Russia’s invasion of Ukraine and the resulting impact on the world’s wheat supply has meant costs have soared for producers and prices have surged on-shelf for consumers.
The prices of food commodities are rising, hitting economies, manufacturers and consumers worldwide. An analysis of the factors behind this surge shows that food inflationary pressures are likely to remain high in 2022 and beyond.
High inflation means an increase in the cost of living, but how are prices rising across different consumer goods categories and markets?