While the US and Europe prepare for still higher food inflation, prices are generally falling across the BRICS economic bloc. Now in sugar markets, new BRICS members Indonesia, Egypt, and the UAE enjoy lower prices than consumers in G7 countries.

The natural resources economics of the BRICS nations are typically the low-cost global producers of key commodities, including in agriculture, energy, and mining.

The trade volumes of BRICS countries inside the bloc are rising sharply, and this trend is leading to shortages and higher prices for consumers in G7 countries.

We already have seen this phenomenon across oil, wheat and grains, coffee, and chocolate. Now it’s playing out in global sugar markets: Brazil is the world’s leading producer of sugar, and is by far the world’s lowest-cost producer. Brazil’s imports to fellow BRICS member countries are rocketing higher as Brazil’s production is also at records.

But the US and Europe relies on higher-cost producers, who are struggling to meet demand and suffering from poor crop conditions. While costs in the US are ripping higher, consumers in China and other BRICS enjoy lower prices.