The Bank of England is increasingly concerned about Russia’s war against Ukraine driving a further surge in food costs, the bank’s governor, Andrew Bailey, told the UK parliament’s Treasury Select Committee on May 16.
According to The Telegraph, Bailey told MPs that food prices are rising at the fastest rate in 30 years, causing “a very big income shock,” and described potential global food price hikes as “apocalyptic.”
If Ukraine remains unable to export the grain and vegetable oil in its stockpiles, UK may experience double-digit inflation rate by the end of the year, the governor said.
“That is a major worry; it is not just a major worry for this country, it is a major worry for the developing world,” said Bailey.
“I am by no stretch of the imagination a military strategist, but whatever can be done to help Ukraine get its food out would be a huge contribution.”
Amid the lack of Ukrainian grain and vegetable oil exports, India has recently banned all wheat exports, citing a major heatwave threatening this year’s harvest.