Short-term outlook of agricultural markets: gradual but fragile return to stability
After experiencing severe shocks and high volatility in the previous years, EU agricultural markets are showing positive signs of stabilising as input costs have steadily declined over the past months and food inflation has returned to a moderate rate. The general macroeconomic and food price environment points to possible improvements in demand for agri-food products in most sectors. Nonetheless, the outlook remains subject to a high degree of uncertainty, linked to weather events, geopolitical conflicts and animal and plant diseases.