Inflation: Global food crisis may persists as Russia-Ukraine war enters second year — IMF

The International Monetary Fund (IMF) has found that the global hunger crisis may persist even as Russia’s invasion of Ukraine enters its second year.

The report hinged the projection on the global inflation of food prices. It added that though there is a decrease in the record-high prices of food recorded in early 2022, the current food prices remain elevated.

Sunday Tribune reports that the prolonged war between the world’s largest wheat exporters and other crucial crops has upended agricultural commodity markets.

The report further cited the consistent decline in food prices recorded between March 2022 and February, according to data provided by the Food and Agriculture Organization (FAO) on Friday.

Despite this, the IMF noted that many vulnerable countries still face heightened food insecurity as global food prices remain high, adding that fragile and conflict-affected states – home to 1 billion people – are at particular risk.

The report read, in part: “As the Chart of the Week shows, inflation-adjusted prices in February remained above the average level for recent years, though they are now back in line with levels seen before the war in Ukraine.

“The FAO Food Price Index composition shows that vegetable oils drove the decline in prices, along with dairy and cereals, while sugar and meat are little changed from early last year.”

The IMF, alongside other FAO, World Bank, World Food Programme and World Trade Organisation had, in a February 8, 2023 statement, urged government and donor organisations to intensify support for “the most vulnerable, facilitate trade and market functioning, and abandon harmful subsidies.”

They added, “more concerted action across these three key areas is needed to prevent a prolonged crisis.”

(TNT)