The swift recovery in global demand was not followed by a corresponding rise in supply of goods and services, which not only heightened inflationary pressures, but also contributed to significant supply disruptions. Average Intercontinental freight rates for a 40ft container, rose from $ in January 2020 to over $ by September 2021.
The rise in freight rate along with demand pressures also helped to support a significant rise in food prices. Reflecting this pressure, the FAO Food Price Index stood at its highest level in October 2021, since July 2011.