Food prices for the eurozone’s shoppers are set to continue rising at near-record rates for at least another year, despite the region’s large agriculture industry, according to a report by the European Central Bank.
The EU produces more agricultural products than it consumes. But this has not insulated Europe from the surge in food prices that has swept across much of the world, driven by soaring fuel and fertiliser costs for farmers and the impact of Russia’s invasion of Ukraine on supplies of key products.
Food prices in the 19 countries that share the euro rose 7.5 per cent in the year to May, an all-time high since the single currency was launched in 1999. Annual food inflation is higher in the US and UK, but prices have been rising faster in the eurozone over the past three months.