Food prices in the euro area are expected to start rising faster again in 2027, driven by higher energy costs and extreme weather, the European Central Bank warned in an analysis published on Tuesday, which said the recent slowdown in food inflation was temporary. Euro area food inflation eased to an average of 1.3 per cent in September, according to the analysis. In Cyprus, inflation for food and non-alcoholic beverages stood at 3.56 per cent. The analysis, ‘Has food inflation lost its bite?’, written by four ECB economists, said uncertainty over the outlook remained and pointed to two major threats to the supply chain. Since the disruption in the Strait of Hormuz, fuel and fertiliser prices have risen sharply.
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