World Bank warns of worsening food insecurity as prices rise up to 4 per cent in two months

World Bank warns of worsening food insecurity as prices rise up to 4 per cent in two months
World Bank warns of worsening food insecurity as prices rise up to 4 per cent in two months - Food prices are expected to rise amid global and local pressures. (Photo: Freepik)
Food prices are expected to rise amid global and local pressures. (Photo: Freepik)

Since March, agricultural and cereal price indices have increased by three per cent and four per cent respectively.

Food and nutrition insecurity across the globe is rising despite broadly stable supplies of major staples, the World Bank has warned in its latest update.
The report shows that since March, agricultural and cereal price indices have increased by three per cent and four per cent respectively.
It attributes the surge to the ongoing conflict between the US and Iran, and climate-related shocks affecting production and supply chains.

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Additionally, it states that acute food insecurity is worsening across several regions, with up to 67 million people in need of food assistance in East and Southern Africa.
In Sudan alone, 14 localities are considered at risk of famine, while nearly 52.9 million people in West and Central Africa are projected to face acute food insecurity during the June to August 2026 lean season.
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On the Middle East conflict, the lender reckons the war has caused disruptions to oil, gas and fertiliser flows through the Strait of Hormuz, pushing urea prices up by 46 per cent month-on-month.

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This has contributed to an eight per cent rise in agricultural price indices and increased fears of a wider affordability crisis.
Looking ahead, fertiliser prices are projected to rise by 31 per cent on average in 2026, reaching their least affordable levels since 2022, further straining global food production systems.
At the same time, climate risks are expected to intensify pressures, with a 61 to 87 per cent probability of El Niño emerging by mid-2026.
The phenomenon could disrupt crop production in South Asia, Southern Africa and parts of East Asia, with rice output potentially falling by 20 to 50 per cent.
The report also highlights uneven inflation trends, with food price inflation remaining persistently high in many low-income countries.
“Domestic food price inflation remained moderately high between January and March 2026. Data for this period indicates a slight deterioration in low-income countries, resulting in a higher share of countries with food inflation above five per cent (40.0 per cent to 45.0 per cent),” reads the report.
“On the other hand, conditions improved in lower-middle-income countries (from 40.8 per cent to 36.7 per cent), upper-middle-income countries (from 34.0 per cent to 29.8 per cent), and high-income countries (from 6.8% to 5.1 per cent).”

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