The World Bank has said that domestic food price inflation remains high around the world and it is threatening food security.
In the Food Security Update report posted on its website, the Washington-based lender, stated that food price inflation data showed high inflation in most low-and middle-income countries, with inflation higher than 5 percent in 61.1 percent of low-income countries, 79.1 percent of lower-middle-income countries, and 70 percent of upper-middle-income countries, with many experiencing double-digit inflation.
In addition, 78.9 percent of high-income countries are experiencing high food price inflation.
The report stated that Africa, North America, Latin America, South Asia, Europe, and Central Asia, remain the most affected countries with food price inflation exceeding overall inflation in 79.8% of the 163 countries in real terms.
“The agricultural and cereal price indices closed 4% and 12% lower, respectively, while export price indices closed at the same level as two weeks ago.
“The decline in the cereal price index was primarily driven by a sharp decline in maize prices which dropped by 21% compared to 2 weeks ago. Wheat prices also declined by 3% while rice prices increased by 1% over the same period.
“On a year-on-year basis, maize and wheat prices are both about 19% lower while rice prices are 16% higher. Maize prices are 4% lower, whole wheat and rice prices are 1% and 3% higher, respectively, than in January 2021,” the report said.
Meanwhile, geopolitical tensions threaten the Black Sea Grain Initiative, including the collapse of the Nova Kakhovka dam and damage to the ammonia pipeline between Russia and Ukraine.
The flooding and disruption of irrigation, along with the demand to reopen the pipeline, are increasing tensions and could lead to the termination of the agreement, ultimately reducing Black Sea exports and undermining Ukraine’s production incentives, which continues to aggravate the situation, the Bank noted.
