In its latest Food Security Update report, the World Bank has forecasted continued high food prices throughout 2024.

The report also highlights significant inflationary pressures across different income brackets in 2023.

According to the Washington-based institution, inflation surpassed 5% in 63.2% of low-income countries in 2023, marking a 1.3% increase compared to the previous update in January 2023. In lower-middle-income countries, inflation remained above 5% in 73.9% of nations, while in upper-middle-income countries, it affected 48% of the countries, showing no change from the previous update.

High-income countries also experienced food inflation above 5% in 44.4% of cases, which represents a 1.9% decrease compared to the previous update. Additionally, in a substantial majority (71%) of the 165 countries surveyed, food price inflation outpaced overall inflation rates.

The International Food Policy Research Institute (IFPRI) has attributed a recent 40% decline in trade volumes in the Suez Canal to attacks by Houthi rebels in the Red Sea. This disruption has heightened concerns about global food security.

The World Bank's Global Economics Prospects 2024 report has underscored the significant challenge of food insecurity amidst various global challenges.

“In 2023, food prices, a significant component of the agricultural price index, declined by 9% because supplies of major crops were ample, except for rice, which declined by 27%. Food prices are expected to decline further in 2024 and 2025, although potential risks such as energy cost increases, adverse weather events, trade restrictions, and geopolitical uncertainty could affect them”, it stated.

The report continued that a blog post from the World Bank Agriculture and Food Global Practice discussed the urgent need for circular food systems to address environmental challenges.