Wheat prices have surged since the start of the Russia-Ukraine war. Many of us would think that the prices of food may fall once the war ends in the near future, but the relevant figures of wheat tell a different story.
Although there is a supply chain disruption in Ukraine's wheat supply, the gap is being filled up by the EU, Russia, and Canada. What really makes the wheat prices surge is the huge increase in input cost and inventory level.
Fertilizer is an important input for planting crops. Producing fertilizer requires a huge amount of natural gas. Natural gas is still at sky-high prices in case you are living under a rock.
The inventory level is also seen at a 5-year low.
In short, the price level of food is not going down anytime soon. Inflation has not seen its peak too.