Food security updates: Key points to remember

On December 1st, 2023, the World Bank published a report outlining the evolution of food prices around the world. The findings show that every region of the world is affected.

From the data available for food price inflation between July and October 2022, more than 85% of the world’s regions have experienced inflation levels above 5%, with the following breakdown:

– Low-income countries – 84.2%

– Lower-middle-income countries – 93%

– Upper-middle-income countries – 93%

– High-income countries – 85.5%

The causes behind are diverse and varied and the following points can be noted:

– The high food inflation price in some countries is a consequence of hyperinflation. Indeed, more than 50% of the top 10 countries are experiencing high nominal inflation in their country;

– The volatility and high prices in the fertilizer market (due to the global economic downturn, the war in Ukraine, the disruption of supply chains) have led to the shortage of agricultural inputs with an impact on agricultural production;

– The increase in the cost of basic commodities (due to more or less the same reasons as in 02). The consequences here are more pronounced in East Asia and the Pacific region

– The climate change with its consequences of heavy rains and floods, extreme water shortage, unprecedented droughts and below normal rainfall have disrupted the expectations of farmers in Africa, the Middle East and South Asia.

Given these consequences, which affect the consumer basket, solutions are needed:

– National and Regional solutions to protect against the risks of shortages of inputs or some agricultural products;

– Adaptation, including technological solutions to cope with the adverse effects of climate change;

– Strong domestic reforms or policies to address the problem of high inflation in some countries;

Leave a Reply

Your email address will not be published. Required fields are marked *