UK shoppers face an “apocalyptic” rise in food prices as a result of the Ukraine war, the Bank of England Governor has warned
Andrew Bailey told MPs Russia’s war in Ukraine is threatening global food supplies and will become “a major worry for this country” and “the developing world”
The country’s top banker told MPs on the House of Commons Treasury committee the war in Ukraine was a factor that would likely see a sharp rise in prices being paid by consumers in Britain and around the rest of the world.
He said: “I’m afraid the one I’m going to sound rather apocalyptic about is food.”
Ukraine is one of the world’s biggest suppliers of crops such as wheat and maize, as well as cooking oil.
Bailey warned that while the war-torn country was still managing to produce goods in the face of Russia’s invasion, there was a struggle to ship supplies out of the country.
Bailey said the potential for further food inflation is a “major worry” for the central bank.
He said: “Ukraine and Russia is the big risk in a way.”
“One is the risk of a further energy price shock, which would come from the cutting off of gas and distillates, such as products like diesel.
“And then, the one which I might sound rather apocalyptic about, is food.”
Ukraine is among the top five global exporters for several vital agricultural products, including corn, wheat and barley, according to the US government, as well as being the top exporter of both sunflower oil and meal.
Bailey’s comments came just days after a UN food chief warned that millions of people will die around the world if Putin does not lift his blockade of Ukraine’s ports.
David Beasley, head of the United Nations World Food Programme, pleaded with the Russian president to end the blockade of Black Sea ports.
He emphasised that the historic port of Odesa, which has come under heavy Russian bombardment, and other ports needed to be operational within the next two months to avoid catastrophe for Ukraine’s economy which is heavily focused on agriculture, recently accounting for just over 40 per cent of its exports.
He warned: “Millions of people around the world will die because these ports are being blocked."
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