Domestic food price inflation to remain high – WB

The World Bank latest Food security updates says that domestic food price inflation remains high around the world. Information between May to August 2022 shows high inflation in almost all low-income and middle-income countries; 93.3% of low-income countries, 90.9% of lower-middle-income countries, and 93% of upper-middle-income countries have seen inflation levels above 5%, with many experiencing double-digit inflation.

The share of high-income countries with high inflation has also increased sharply, with about 85.7% experiencing high food price inflation. The war in Ukraine has altered global patterns of trade, production, and consumption of commodities in ways that will keep prices at high levels through the end of 2024 exacerbating food insecurity and inflation. According to the 2022 Global Report on Food Crises Mid-Year Update, the number of people in food crisis or worse is forecast to reach up to 205.1 million in 45 of the 53 countries/territories.

Following the start of the war in Ukraine, trade-related policies imposed by countries have surged. The global food crisis has been partially made worse by the growing number of food trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices.

Wheat and maize prices are 31% and 34% higher, respectively, than in January 2021, and rice prices are 15% lower. As of September 15, 2022, 21 countries have implemented 30 food export bans, and six have implemented 11 export-limiting measures. India, the world’s largest exporter of rice, recently imposed trade restrictions on certain types of rice.

As part of a comprehensive, global response to the ongoing food security crisis, the World Bank Group is making up to $30 billion available over a period of 15 months in areas such as agriculture, nutrition, social protection, water and irrigation.