By Sodiq Adelakun
The World Bank’s latest Food Security Update has brought to light the significant impact of domestic food price inflation on various regions across the globe, with Nigeria, along with other African, North American, and Latin American nations, facing the brunt of this economic challenge.
According to the report, the prevalence of inflation rates exceeding five percent is notably high, affecting nearly 62 percent of low-income countries. The situation is even more pronounced in lower-middle-income countries, where 76.1 percent are grappling with this level of inflation.
Upper-middle-income and high-income countries are not immune, with 50 percent and 57.4 percent respectively also experiencing elevated inflation rates.
The World Bank highlighted that since its previous update, there has been a marked increase in the indices for agriculture, cereal, and exports, with rises of two, six, and one percent respectively.
Notably, staple commodities such as maize and wheat have seen significant price hikes, with increases of eight and 14 percent respectively.
Despite the slowdown in the global economy, the demand for agricultural products is not showing any signs of waning.
On the contrary, the World Bank anticipates that the demand will surge to record levels in the upcoming 2023/24 marketing season, adding further pressure to the already high domestic food prices.
This update underscores the ongoing challenges faced by countries worldwide as they strive to manage the delicate balance between sustaining economic growth and ensuring food security for their populations..
“Domestic food price inflation remains high. Inflation higher than five percent is experienced in 61.9 percent of low-income countries, 76.1 percent of lower-middle-income countries, 50 percent of upper-middle-income countries, and 57.4 percent of high-income countries.
“The most affected countries are in Africa, North America, Latin America, South Asia, Europe, and Central Asia. In real terms, food price inflation exceeded overall inflation in 74 percent of the 167 countries where data is available,” the report partly read.
Following Russia’s invasion of Ukraine, the report said trade-related policies imposed by countries had surged.
The global food crisis, it added, had been partially made worse by the growing number of food trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices.
Two weeks ago, the latest Consumer Price Index: November 2023’ report released by the National Bureau of Statistics said Nigeria’s food inflation rate increased to 32.84 percent.
The cost of food rose highest in Kogi, Kwara, and Rivers where food inflation in each state surged to 41.29 percent, 40.72 percent, and 40.22 percent respectively.
The food inflation rate in November was 8.72 percentage points higher than what was recorded in November 2022 (24.13 percent).
The report showed that the rise in food prices was caused by increases in the prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables and coffee, tea and cocoa.
The NBS said, “On a month-on-month basis, the food inflation rate in November 2023 was 2.42 percent this was 0.51 percent higher compared to the rate recorded in October 2023 (1.91 percent).”