Food inflation is set to accelerate in the US: Average inflation for food and beverage companies surged +7.9% YoY in March, the biggest jump in at least 12 months. This is up +373 basis points from +4.2% in February.

The largest jump was recorded in tomatoes at +102% YoY, vegetables at +90%, and diesel at +88%.

This was largely driven by higher fuel costs, meaning the full impact of rising fertilizer and plastics prices has not yet been reflected.

Meanwhile, urea prices, the world's most widely used nitrogen fertilizer, have doubled since February, to ~$900 per metric ton, the highest since the 2022.

Fertilizer costs are rapidly rising for farmers and will eventually translate into higher wholesale food prices before landing on grocery store shelves.

Food inflation is set to accelerate.