Until recently economists tended to treat energy inflation and food inflation as different entities. Russia’s attack on Ukraine and other factors put a laser-like focus on the relationship between the two.

Ukraine and Russia are known as “the breadbasket of Europe” due to the region’s abundance of grains like wheat, barley, corn and soybeans. Within about a week of Russia crossing into eastern Ukraine on Feb, 24, 2022, prices for soybeans and some vegetable oils spiked up to 60%.

The United Nations’ FAO Food Price Index hit a record high the following month.

The index tracks monthly changes in the prices of five food commodities: cereals, vegetable oils, dairy products, meat and sugar.

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