What is the impact on poor countries?
Alif Hussein of the World Food Program said that in a series of countries currently facing other “shocks”, such as Covid-19, food price inflation is currently over 20%.
Lebanon is facing a severe financial and economic crisis, causing its currency to fall into chaos and close to default. According to data from the Trade Economics website, the food price inflation rate in May was 226% (calculated in 12 months).
In Argentina, the government suspended beef imports for a month in mid-May due to soaring food price inflation.
According to the World Bank, Nigeria’s high inflation due to sharp increases in food prices has pushed another 7 million people into poverty.
Hussein of the World Food Program said: “Prices are rising, but at the same time, people’s incomes are decreasing because of Covid.”
“A poor person is squeezed by rising prices and they have no money,” he said, noting that conflict is the main cause of food insecurity.
