By African Demystifier
The war in Ukraine brought a major shock to global food price/ markets.ย
The World Bankโs Food Commodity Price Index, which reached a record high in nominal terms during March-April 2022, is up 15% over the previous two months and more than 80% higher than two years ago. Wheat and several edible oils led the surge (Ukraine and Russia are important exporters of these commodities).
The Ukraine shock added to a broad-based rise in commodity prices that began in mid-2020 with various supply chain constraints and surging demand. Food prices are expected to rise about 20% this year before easing in 2023. Risks to outlook include further supply disruptions, higher input costs, and policy restrictions.