 Most of us have seen a huge inflation in food prices in the last year. What's behind our inflating food prices? Here are five big reasons. Higher energy and fuel prices. Rising energy prices means an increase in the cost of powering the machinery used to grow, harvest, transport and process raw foods. Higher fertilizer prices. Natural gas is a key raw material for producing synthetic fertilizers used in agriculture. Global natural gas prices recently hit a 14-year peak. Prices have also been impacted by Russia cutting its exports of fertilizers. Increased shipping costs. Increased fuel prices means increased shipping costs. Countries that rely heavily on global supply chains will see higher inflation rates, particularly for high-import countries, landlocked countries, island countries and low-income countries. Weakened currency. Many countries now have a weakened currency relative to the US dollar. Weakened currency means higher import costs as imports are mostly denominated in dollars. In 2022, the US dollar became stronger than the euro for the first time since 2002. Export restrictions. With the ongoing war in Ukraine, high energy prices and short supply of fertilizers, some food-producing countries have placed limits on food exports to ensure they retain enough to feed their own populations. This helps boost local food security and keep local food prices down. But it restricts global food supplies, further increasing food prices in other parts of the world.