The report, which will be published later this month, reveals how between 2020 and 2024, the world experienced a spectacular increase in food prices pulled by a combination of COVID 19 Inflation, the war in Ukraine restricting movements on food and staple products and the increase in climatic shocks.
“The episodes described in this publication evoke what we call a perfect storm,” said Mr. Torero Cullen.
First, he explained that during the COVID-19 pandemic, governments launched budgetary stimulus and emergency packages, which increased demand and, consequently, global inflation.
The invasion of Russia on a large scale of Ukraine has aggravated this crisis. Before the start of the war in 2022, Ukraine was a key exporter of wheat, sunflower oil and fertilizer. War not only restricted these exports, but disrupted the commercial roads and pushed the fuel and the entry costs, which amplified inflation around the world.
In addition, climatic shocks increasingly frequent and intense in large production regions – such as droughts, floods and heat waves – aggravated food inflation.
World impacts
It was not until 2024 that prices were returned to the pre-cook levels, which means that households had trouble for several years to afford food, with major consequences.
As real wages have dropped while food prices increased, household purchasing power was eroded. Households reacted by buying cheaper and less nutritious foods, reducing the frequency of meals and often prioritizing meals for certain family members and reducing the contribution for women and children.
Mr. Torero Cullen also explained that an increase in food prices is directly correlated to an increase in moderate and severe food insecurity. The impacts of this were particularly severe in West Africa and Asia, where food imports, dependence and depreciation of money made food even more expensive.
In addition, as food prices increased, nutritional results in children under the age of five have worsened. The SOFI report has shown that an increase in food prices by 10% resulted in an increase of 2.7 to 6.1% declinewhich has lasting effects on child development and public health systems.
In particular, these serious impacts were uneven, mainly affecting low -income and African countries – many of which still see an aggravation of the figures. During the peak of the crisis in January 2023, some low -income countries experienced food price inflation of up to 30%, against 13.6% worldwide.
Political recommendations
Mr. Torero Cullen finished his briefing by describing the detailed political prescriptions in the Sofi report.
He first underlined the targeted budgetary support. “Social protection measures are the most effective response to food price peaks,” he said. “This will protect vulnerable populations without creating a long -term fiscal risk or market distortions.”
He also underlined by avoiding trade disturbances, by coordinating monetary and budgetary policies, improving market transparency and institutional preparation as an essential components to avoid future crises.
“This Sofi stresses that inflation can undermine progress. He underlines our vulnerabilities, and it also brings the importance of strengthening resilience, inclusion and transparency to avoid and minimize the risk of these problems, “he concluded.
Publicado anteriormente en Almouwatin.
