The World Bank has stated that domestic food price inflation remains high in low and middle-income countries, noting that inflation higher than five percent is experienced in 59.1 percent of low-income countries and 63 per cent in lower-middle-income countries.
According to the World Bank’s latest food security update gleaned from its X handle, in real terms, food price inflation exceeded overall inflation in 53 per cent of the 166 countries where data is available, pointing out that since the last update on April 25, 2024, the agriculture and cereal price indices closed at 1 per cent and 6 per cent higher respectively, while the export price index closed at 4 per cent lower.
World Bank said cereals, maize, and wheat prices closed at 4 per cent and 21 per cent higher, respectively, while rice prices closed at 1 per cent lower.
The report added that on a year-on-year basis, maize prices are 21 per cent lower, wheat prices are 7 per cent higher, while rice prices, on the other hand, are 20 per cent higher.
“Compared to January 2020, maize prices are 19 per cent higher, wheat prices are 24 percent higher, and rice prices are 46 percent higher, “the report said.
The World Bank’s latest Commodity Markets Outlook, published late April 2024, sheds light on significant developments and future projections in global food commodity markets.
In early April, the food price index moderated after a 4 per cent decline in the first quarter of 2024, to a level at 9 per cent lower than a year earlier while grains, oils, meals, and other food sub-components exhibited declines ranging from 2 per cent to 5 per cent. Maize prices fell by approximately 11 per cent, and wheat prices decreased 4 per cent, reaching three-year lows.
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“These reductions were attributed to competitive pricing from the Black Sea region, increases in production by major exporters, and optimistic outlooks for the upcoming harvest, with global maize production expected to reach record highs. Rice prices rose by around 4 per cent over the same period, standing 28 per cent higher year-on-year because of supply concerns in major exporting nations,” the statement added.
Following Russia’s invasion of Ukraine, trade-related policies imposed by countries have surged. The global food crisis has been partially made worse by the growing number of food and fertilizer trade restrictions put in place by countries with the goal of increasing domestic supply and reducing prices.
As of May 28, 2024, 16 countries have implemented 22 food export bans, and 8 have implemented 15 export-limiting measures. (Punch)
