Food shortage and inflation risks rise after Russia withdraws from Black Sea export deal

Prices for food items rise again after fears that Russia's move to hamper exports from Ukraine will exacerbate shortages and intensify the inflation crisis. Business reporter @SkyNewsBiz Wheat and other wholesale food costs have risen sharply after Russia withdraws from an export deal designed to ensure crucial supplies flow from war-torn Ukraine. Wheat futures jumped almost 6% on Monday while corn rose more than 2% - reflecting renewed concerns around shortages that have dogged markets since Moscow's decision to invade its neighbour in February. Ukraine and Russia account for 30% of global wheat supplies. A deal with Vladimir Putin's government had been struck, via the United Nations, in July to allow shipments from Ukraine. But Russia announced on Saturday that it would indefinitely suspend its participation in the export agreement, citing what it called a major Ukrainian drone attack on its fleet in Crimea. Please use Chrome browser for a more accessible video player Traders suggest