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Economics

Soaring Rice Price Shows Food Inflation Still Stalking the World

  • Benchmark price in Asia has jumped to almost two-year high
  • UN flags rice surge as potential risk for world food security
A farmer plants rice in a paddy in Sisaket province, Thailand.

A farmer plants rice in a paddy in Sisaket province, Thailand.

Photographer: Luke Duggleby/Bloomberg

Rice prices are climbing, a sign that the food inflation shock that threw millions into poverty is still reverberating, even as the cost of wheat and other farm commodities has declined. 

Thai rice, a benchmark for Asia, has soared to the highest in almost two years. Strong demand lies at the heart of the rally, with some importers buying more of the grain to replace wheat after the war in Ukraine disrupted supplies. Some consumers have also been stocking up ahead of festivals, while a strengthening Thai currency has also helped to push up dollar-denominated prices.