Citi warns global food inflation

Citi Research has issued a warning about rising global food inflation risks over the next 6-12 months. The report highlights two primary drivers: potential disruptions in the Strait of Hormuz, which could escalate energy and fertilizer costs, and worsening El Niño–Southern Oscillation conditions, expected to cause hotter temperatures and lower rainfall, particularly in Asia, thereby hurting crop production. Commodities like Sugar, Cocoa bean, and Coffee are identified as highly vulnerable. The report notes that traded agricultural prices have already risen 13% year-to-date through mid-May, with broader food indices up 5% through April, indicating intensifying inflationary pressures.