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.
More insights
- 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.
