Petrol and food prices will fall over the next two years amid a slump in the price of oil, a report by the World Bank has said. Global commodity prices are projected to plummet by nearly 10 per cent over the period to 2026, the World Bank said, as falling demand from China and increased production leads to a “glut” of crude supplies.
Despite the sharp decline, overall commodity prices will likely remain around 30 per cent above their level in the five years before the pandemic.
However, inflationary pressures are still swirling in the food sector - in Ireland and the UK the price of dairy products have seen a sharp jump recently.
Stalker is reminded of the food industry source, who pointed out during the thick of the cost of living crisis, that price rises would be staggered into the coming years to avoid precipitous and demand curbing hikes.
Grocery price inflation in Ireland has climbed to over 3 percent, and is as of the start of November sitting at 3.3 percent.
The UK general inflation rate has also taken a sharp leap recently to the level of 3 percent. The world bank projections are only that - projections.
