What are the impacts of food inflation on people and the economy?

Food inflation can have negative impacts on people and the economy, such as:

Reducing the real income and living standards of consumers, especially the poor and the vulnerable, who spend a larger share of their income on food.

Increasing the cost of production and reducing the profitability and competitiveness of producers, especially smallholder farmers and small businesses, who face higher input costs and lower demand.

Creating uncertainty and volatility in the market, which can affect the investment and consumption decisions of both producers and consumers, and hamper the economic growth and development12