World Bank Report Shows Food Prices Remain High Globally

The latest Food Security Update report from the World Bank, released on Tuesday, highlights that inflation in food prices remains high worldwide across low, middle, and high-income nations, according to available data.

The report stated that in 63.2% of low-income countries, inflation exceeded 5%, marking a 1.3 percentage point increase from the previous food update on Jan. 17, 2023. Additionally, the World Bank report showed that 73.9% of lower-middle-income countries and 48% of upper-middle-income countries experienced inflation levels surpassing 5%, with no change from the previous update.

In high-income countries, the bank noted that food inflation surpassed 5% in 44.4% of nations, marking a decrease of 1.9 percentage points from the previous food update.

Additionally, the report highlighted that in 71% of the 165 countries with available data, food price inflation outpaced overall inflation in real terms.

The International Food Policy Research Institute (IFPRI) reports that recent assaults by Houthi rebels on vessels in the Red Sea have led to a 40% reduction in trade volumes through the Suez Canal, thus diminishing global food security, World Bank’s Food Security Update noted.

In 2023, food prices, mainly in the agricultural price index, fell by 9% due to ample supplies of major crops, except for rice, which declined by 27%.

Forecasts indicate further price declines in 2024 and 2025, although risks like energy cost hikes, adverse weather, trade constraints, and geopolitical uncertainty could intervene.

In response to the global food security crisis, the World Bank Group has ramped up its efforts by allocating $45 billion, including $22 billion in new lending and $23 billion from existing portfolios. These initiatives now cover 90 countries, addressing both short-term needs like expanding social protection and long-term goals such as boosting productivity and implementing climate-smart agriculture.

World Bank further stated that its intervention is projected to positively impact 335 million individuals, equivalent to 44% of the undernourished population. Approximately 53% of the beneficiaries are women, who are disproportionately affected by the crisis.

One of the World Bank’s interventions, the West Africa Food Systems Resilience Programme, has a budget of $766 million and aims to improve preparedness against food insecurity while enhancing the resilience of food systems in the region. Furthermore, the bank is preparing an extra commitment of $345 million for Senegal, Sierra Leone, and Togo