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High Global Food Prices Until 2024!
High Global Food Prices Until 2024!
The Agricultural Price Index was 19% higher on July 15, 2022, compared to January 2021. Maize and wheat prices were 15% and 24% higher, respectively, compared to January 2021, while rice prices were around 11% lower.
Globally, domestic food price inflation is strong. Between February and June 2022, almost all low- and middle-income countries experienced high inflation; 94.1 percent of low-income countries, 88.9 percent of lower-middle-income countries, and 87 percent of upper-middle-income countries experienced inflation levels above 5 percent, with many experiencing double-digit inflation.
The proportion of high-income nations suffering high inflation has also expanded significantly, with around 67.9 percent facing high food price inflation.
According to the World Bank's April 2022 Commodity Markets Outlook, the Ukraine conflict has disrupted global patterns of commodity trade, production, and consumption in ways that will keep prices at historically high levels through the end of 2024, increasing food poverty and inflation.
Food costs were already high before the war, and the fighting is driving them much higher. Wheat, maize, edible oils, and fertilizers have been particularly hard hit.
Global commodities markets face upside risks from the following sources: reduced grain supply, higher energy costs, higher fertilizer prices, and trade disruption caused by significant port closures.
Access to fertilizers will be a big concern in the coming months, potentially affecting food production across several crops in many places.
Russia and Belarus are significant fertilizer exporters, accounting for 38% of potassic fertilizers, 17% of compound fertilizers, and 15% of nitrogenous fertilizers.
On April 13, 2022, the leaders of the World Bank Group, the International Monetary Fund, the United Nations World Food Programme, and the World Trade Organization issued a joint statement urging the international community to take immediate action to address food insecurity, keep trade open, and assist vulnerable countries, including by providing financing to meet the most pressing needs (World Bank,2022).
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