Global Food Price Inflation rises above 5%- World Bank

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Domestic food price inflation remains high around the world, as information between May to August 2022 shows high inflation in almost all low-income and middle-income countries, a World Bank Food security report has shown.
It added that many of these countries are experiencing double-digit inflation.
The share of high-income countries with high inflation has also increased sharply, with about 85.7 percent experiencing high food price inflation,” the report said.

 

READ ALSO: World Bank Warns Against Simultaneous Rates Hike

 

The report added that since the last update issued on August 11, 2022, the agricultural price index has remained relatively stable and is currently only 1 point higher.

It said: “Wheat, maize, and rice prices are 17 percent, 29 percent, and 6 percent higher, respectively, than in September 2021. Wheat and maize prices are 31 percent and 34 percent higher, respectively, than in January 2021, and rice prices are 15 percent lower.”

The World Bank noted that 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. “

This, it said was worsening food insecurity and inflation.

According to the World Bank 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.

 

Interventions

The World Bank says it is providing up to $30 billion over a period of 15 months in areas such as agriculture, nutrition, social protection, water and irrigation to curtail the impact of the food crises.

“This financing will include efforts to encourage food and fertilizer production, enhance food systems, facilitate greater trade, and support vulnerable households and producers:

The report showed a breakdown of the use of the funds:

  1. A $300 million project in Bolivia that will contribute to increasing food security, market access and the adoption of climate-smart agricultural practices.
  2. A $315 million loan to support Chad, Ghana and Sierra Leone to increase their preparedness against food insecurity and to improve the resilience of their food systems.
  3. A $500 million Emergency Food Security and Resilience Support Project to bolster Egypt’s efforts to ensure that poor and vulnerable households have uninterrupted access to bread, help strengthen the country’s resilience to food crises, and support to reforms that will help improve nutritional outcomes.
  4. A $130 million loan for Tunisia, seeking to lessen the impact of the Ukraine war by financing vital soft wheat imports and providing emergency support to cover barley imports for dairy production and seeds for smallholder farmers for the upcoming planting season.
  5. The $2.3 billion Food Systems Resilience Program for Eastern and Southern Africa, helps countries in Eastern and Southern Africa increase the resilience of the region’s food systems and ability to tackle growing food insecurity.

The World Bank said the program will enhance inter-agency food crisis response, also boost medium- and long-term efforts for resilient agricultural production, sustainable development of natural resources, expanded market access, and a greater focus on food systems resilience in policymaking.

 

 

 

 

 

 

Hauwa Abu

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