Taps Coogan – February 10th, 2023

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Global food inflation has moderated to -3% year-over-year according to the UN’s World Food Price Index after two years of breakneck growth, as the following chart from Liz Ann Sonders highlights.

Of course, that doesn’t mean food prices have gone back to where they were before Covid, simply that they have declined slightly from their all-time highs last year.

While regaining the purchasing power that consumers have lost in the past couple years is unlikely to ever happen, most commodities have declined over the past year, creating the space for year-over-year inflation metrics to continue to moderate.