Written question asked by Lord Spellar (Labour) on Tuesday, 19 April 2022, in the House of Commons. It was due for an answer on Thursday, 21 April 2022. It was answered by Baroness Prentis of Banbury (Conservative) on Thursday, 28 April 2022 on behalf of the Department for Environment, Food and Rural Affairs.

Food: Prices

Question: To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment his Department has made of the impact of market speculation on food prices.

Answer: Increases in international food commodity prices have been driven by a range of factors, including rising energy prices, increased demand, and trade disruption. Russia's invasion of Ukraine has impacted the ability of Ukraine to produce and export key agricultural commodities. This suggests that the main driver of the observed price changes is due to Ukraine’s inability to export. Previous assessments by Government economists have suggested there are good reasons to be sceptical that speculation in futures markets has been a significant cause of food price spikes. The department continues to monitor market developments closely alongside international partners like the Agricultural Market Information System.

Secondary information