Bank of America: Food prices in the United States will continue to historically high

Washington-Sana

Bank of America expected food prices to continue their historic rise in the United States, calling on Americans to get used to the severe shocks they are going through as a result of the high prices in stores.

“We expect food inflation in the United States to reach 9 percent by the end of this year, and food prices will continue to rise in light of the Ukrainian crisis,” the American business and financial magazine Fortune quoted Alexander Lin, the bank’s chief economic analyst, as saying.

Lin noted that the fallout from the Ukrainian crisis and the rising costs of natural gas made matters worse for farmers who were grappling with unprecedented rising costs, as the cost of agricultural chemicals, including fertilizers and pesticides, jumped by nearly 50 percent a year.

The past alone has also exacerbated increases in fertilizer prices which is critical as it is reflected in production costs.

Russia is the world's largest fertilizer exporter, exporting in 2020 about $8 billion worth of biofertilizer compounds, including urea and potash, to countries around the world.

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