World Bank Report Shows Persistently High Global Food Price Inflation – The latest Food Security Update report released by the World Bank on April 26th reveals that food price inflation remains high on a global scale. The report states that almost all low- and middle-income countries have been experiencing high inflation between December 2022 and March 2023.
More than 70% of low-income countries and 90% of lower-middle-income countries have inflation rates greater than 5%. In addition, 87% of upper-middle-income countries have inflation rates above 5%, some of which are experiencing double-digit inflation.
According to the report, high-income countries are not exempt from this trend, as 84.2% of them are currently experiencing high food price inflation. The hardest-hit regions are in Africa, North America, Latin America, South Asia, Europe, and Central Asia.
The report also references the Food and Agriculture Organisation (FAO), which stated that the benchmark index of international food commodity prices declined for the 12th consecutive month in March 2023. The FAO Food Price Index averaged 126.9 points in March, indicating a marginal 2.1% decrease from February 2023 and a 20.5% decrease from its peak in March 2022. The report attributes this decrease to a combination of factors, including ample supplies, subdued import demand, and the extension of the Black Sea Grain Initiative.
To address the food security crisis, the World Bank announced in April 2022 that it would provide up to $30 billion over 15 months, including $12 billion in new projects. The bank aims to scale up short-term and long-term responses along four themes to boost food and nutrition security, reduce risks, and strengthen food systems. Between April and December 2022, the bank’s food and nutrition security commitments in new lending passed the $12 billion mark, with almost half of this allocated to Africa.
Some examples of the bank’s efforts include the $766 million West Africa Food Systems Resilience Programme, which focuses on increasing preparedness against food insecurity and improving the resilience of food systems in West Africa.
The programme aims to increase digital advisory services for agriculture and food crisis prevention and management, boost adaptation capacity of agriculture system actors, and invest in regional food market integration and trade to increase food security.
Currently, an additional $345 million is under preparation for Senegal, Sierra Leone, and Togo. The World Bank is committed to tackling the global food security crisis and promoting sustainable food and nutrition security.
