Food prices rise globally

Average wheat, maize, and rice prices rose 20 per cent, 29 per cent and 8 per cent respectively worldwide in September compared to a year ago, according to the Food Security Update of the World Bank.  

Similarly, wheat and maize prices were 33 per cent and 30 per cent higher compared to those in January last year. Rice prices were 12 per cent lower during the period, however.

Compared to two weeks ago, the agricultural price index was 3 percentage points lower.

Domestic food price inflation remains high around the world. Information between May to August 2022 shows high inflation in almost all low-income and middle-income countries.

About 88.2 per cent of low-income countries, 91.1 per cent of lower-middle-income countries, and 93 per cent of upper-middle-income countries have seen inflation levels above 5 per cent, with many experiencing double-digit inflation.

High food prices have triggered a global crisis that is driving millions more into extreme poverty, magnifying hunger and malnutrition

The share of high-income countries with high inflation has also increased sharply, with about 82.1 per cent experiencing high food price inflation.

According to the Bangladesh Bureau of Statistics, food inflation in the country stood at 8.2 per cent in July, the latest for which data was available.

The World Bank Update showed after some brief relief in the summer of 2022, fertiliser prices are beginning to rise again.

In the last week of August, prices increased significantly for ammonium nitrate by 9 per cent to 960 euros per tonne and for calcium ammonium nitrate by 13 per cent to 850 euros per tonne.

"Limited fertiliser production in Europe, mainly caused by tight natural gas supplies and high energy prices, will likely lead the European Union to become a net importer of fertiliser, putting pressure on global markets," it said. 

In addition to increasing energy prices, policy measures such as export restrictions in countries such as China, Belarus, and Russia, all major fertiliser suppliers, have limited global fertiliser availability.

In addition to increasing energy prices, policy measures such as export restrictions have limited global fertiliser availability.

"The war in Ukraine has altered global patterns of trade, production, and consumption of commodities in ways that will keep prices at high levels through the end of 2024 exacerbating food insecurity and inflation," said the WB.

High food prices have triggered a global crisis that is driving millions more into extreme poverty, magnifying hunger and malnutrition. The number of people who are experiencing acute food insecurity and will need urgent assistance is likely to climb to 222 million people in 53 countries and territories, according to a report by the Food and Agriculture Organisation and the World Food Programme.

Following the start of the war in Ukraine, trade-related policies imposed by countries have surged. The global food crisis has been partially made worse by the growing number of food trade restrictions put in place by countries with the goal of increasing domestic supply and reducing prices.

As of September 29, some 20 countries have implemented 29 food export bans, and six have implemented 12 export-limiting measures, the update added.