February 2, 2023

Higher food and energy prices could last ‘for years,’ World Bank warns

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The World Bank said in its Commodity Markets Outlook report on Tuesday that the rise in energy prices over the past two years was the largest since the 1973 oil crisis, while food prices have risen the most since 2008. ۔

“Overall, this is the biggest commodity shock we’ve experienced since the 1970s,” said Andrew Gill, the World Bank’s vice president for equitable development, finance and institutions.

Russia is the largest exporter of oil, natural gas and coal, while Ukraine is the largest source of wheat and corn. Rising fertilizer prices and rising prices of key metals have exacerbated the situation.

The World Bank said that after nearly doubling last year, energy prices are expected to rise by more than 50% this year before easing in 2023 and 2024. According to the report, food prices will rise by 22.9% this year, which is in line with the 40% increase in wheat prices.

The World Bank warns that “these developments have begun to exacerbate the effects of the stalemate.” “Policymakers should seize every opportunity to boost domestic economic growth and avoid actions that could hurt the global economy.”

The World Bank says prices are expected to remain at “historically high levels” by the end of 2024.

The fear is that high commodity prices will hit low-income families hardest.

Ehan Koss, director of the World Bank’s prospectus group, said in the report: “The resulting rise in food and energy prices is causing significant human and economic damage – and could potentially hamper progress in reducing poverty. Will

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