Food inflation is far above average inflation
The World Bank said in a new update on Monday, the rise in food prices is outpacing inflation, with low- and middle-income countries hardest hit – although prices are rising.
Inflation is at a worldwide high according to the World Bank on Monday.
Lebanon tops the chart with real food inflation of 122%, compared with the same period last year. Next is Zimbabwe with 23%.
A variety of countries identified as middle-income are also on the list, such as Sri Lanka, Turkey and Iran.
The bank said seven countries facing particular risk of overlapping food and debt crises – including Afghanistan, Mauritania, Somalia, Tajikistan and Yemen.
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How serious is the situation?
About 94% of low-income countries, 89% of lower-middle-income countries and 89% of upper-middle income countries have nominal food inflation above 5% year-on-year.
East and South Africa are likely to see worse conditions in the coming months. South Sudan and Sudan face the risk of starvation, while the Democratic Republic of the Congo and Ethiopia are also seeing their food security decline.
Countries in East Asia and the Pacific have so far been better insulated from the crisis, but high energy prices could cause problems in the second half of the year, raising concerns about risks. to society.
Potential problems surrounding rice production are being closely watched. “Debt restructuring and reduction will also be a priority for countries with unsustainable debt burdens,” the latest update said, echoing longstanding concerns.
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The war in Ukraine has worsened the food security situation – so far only one ship has left Ukrainian ports carrying grain under a UN agreement – and has also caused increase trade restrictions. The bank tracked 18 countries implementing 27 food export bans, while 7 countries imposed export limits.
The Bank says aid could be a solution, giving governments in disaster-hit countries the chance to secure cash transfers to the most vulnerable.
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Source: World Bank