The latest data from the U.S. Department of Agriculture (USDA) shows that the condition of the U.S. corn crop has deteriorated sharply due to extreme heat and drought. The percentage of corn currently rated “good” or “excellent” has fallen to 63%, down 4 percentage points from a week ago—the largest single-week decline in nearly three years. This situation has driven up corn futures prices and intensified market concerns about a resurgence of food inflation. The Bloomberg Agriculture Spot Index recently hit a three-year high, and Bank of America has also warned of the risk of another round of grocery inflation. However, weather forecasts indicate that conditions in the U.S. Corn Belt are expected to improve later this week.