The war in Ukraine has had immediate effects on world food markets. Both Ukraine and Russia are global players on agricultural commodities that are essential for food security, such as wheat, barely, corn or sunflower oil and seeds.
The link between food price spikes and political instability (until 9 March 2022)
Price index (base year = 2008)
Prices for agricultural commodities were following an upward trend as a result of governments response to the Covid-19 crisis, e.g., fiscal stimulus in some nations, loose monetary policies, coupled with stockpiling and export restrictions by some countries. But the current conflict has sent prices up to new and perilous heights, even exceeding those observed at the beginning of the Arab Spring and the food riots that resulted in significant casualties in 2007-2008.
The new price spike is a collateral damage of the ongoing war, which can compromise political stability and food security anywhere in the world.