Domestic food price inflation remains high in many low and middle-income countries, the World Bank said.
Inflation higher than 5% is experienced in 77.3% of low-income countries (18.2% points higher since the last Update on June 27, 2024), 54.3% of lower-middle-income countries (8.7% points lower), 44% of upper-middle-income countries (8.0% points higher), and 10.7% of high-income countries (0.2% points lower).
In real terms, food price inflation exceeded overall inflation in 55.6% of the 167 countries where data is available.
Since the last update on June 27, 2024, the agricultural and export price indices closed 1 and 2 percent higher, respectively; the cereal index was unchanged. With the end of the year approaching, 2024 is likely to be one of the warmest years on record, the Agricultural Market Information System (AMIS) Market Monitor for September 2024 highlights significant impacts on global commodity markets.
Recent weather patterns have had mixed effects on agricultural production forecasts: maize output is projected to decrease because of heat affecting the European Union, Mexico, and Ukraine, whereas soybean production is expected to rise thanks to favorable conditions in the United States.
Following Russia’s invasion of Ukraine, trade-related policies imposed by countries have surged. The global food crisis has been partially made worse by the growing number of food and fertilizer trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices. As of September 2024, 16 countries have implemented 22 food export bans, and 8 have implemented 15 export-limiting measures.
“The World Bank food and nutrition security portfolio now spans across 90 countries. It includes both short term interventions such as expanding social protection, and longer-term resilience such as boosting productivity and climate-smart agriculture.”
“The Bank’s intervention is expected to benefit 296 million people.”
