Food

 

According to the World Bank Group, the most recent food security update, released on December 18, 2023, reveals persistently high domestic food price inflation. Over 5% inflation is reported in 61.9% of low-income countries, 76.1% of lower-middle-income countries, 50% of upper-middle-income countries, and 57.4% of high-income countries. The impact is most pronounced in regions such as Africa, North America, Latin America, South Asia, Europe, and Central Asia.

Key indices, including agriculture, cereal, and export prices, have risen by 2%, 6%, and 1%, respectively, since the previous update. Specifically, maize and wheat prices surged by 8% and 14%, driving the increase in the cereal price index, while rice prices increased by 1%. On a year-on-year basis, maize and wheat prices have decreased by 28% and 25%, respectively, while rice prices have risen by 36%. Compared to January 2021, maize prices are 6% lower, wheat prices are 4% lower, and rice prices are 19% higher.

The FAO food price index suggests that global agricultural food commodity prices in October 2023 were nearly 25% lower than their peak in April 2022. This decline is attributed to robust harvests in major food-producing countries, reduced shipping costs, and more affordable energy and fertilizer prices. Notably, cereals, vegetable oils, meat, and dairy products drove this decrease in most markets. However, sugar and rice prices bucked the trend, experiencing double-digit increases due to El Niño effects on production, trade restrictions, and producer country stockpiling amid concerns of a looming shortage.

For more information, you can refer to the World Bank Group's Food Security Update.