KUALA LUMPUR (Oct 4): The World Bank Group said domestic food price inflation remains high around the world.

In its Food Security Update on Monday (Oct 3), the bank said information between May to August 2022 shows high inflation in almost all low-income and middle-income countries; 88.2% of low-income countries, 91.1% of lower-middle-income countries, and 93% of upper-middle-income countries have seen inflation levels above 5%, with many experiencing double-digit inflation.

It said the share of high-income countries with high inflation has also increased sharply, with about 82.1% experiencing high food price inflation.

The World Bank said that compared to two weeks ago, the agricultural price index is three percentage points lower.

It said average wheat, maize, and rice prices in September 2022 are 20%, 29%, and 8% higher, respectively, than in September 2021.

Meanwhile, wheat and maize prices are 33% and 30% higher, respectively, and rice prices are 12% lower than in January 2021.

The bank said that after some brief relief in the summer of 2022, fertiliser prices are beginning to rise again. In addition to increasing energy prices, policy measures such as export restrictions have limited global fertiliser availability.

It said the war in Ukraine has altered global patterns of trade, production, and consumption of commodities in ways that will keep prices at high levels through the end of 2024 exacerbating food insecurity and inflation.

High food prices have triggered a global crisis that is driving millions more into extreme poverty, magnifying hunger and malnutrition.

The number of people who are experiencing acute food insecurity and will need urgent assistance is likely to climb to 222 million people in 53 countries and territories, it said.

The bank said following the start of the war in Ukraine, trade-related policies imposed by countries have surged.

It said the global food crisis has been partially made worse by the growing number of food trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices.

It said as of Sept 29, 2022, 20 countries have implemented 29 food export bans, and six have implemented 12 export-limiting measures.

As part of a comprehensive, global response to the ongoing food security crisis, the World Bank Group is making up to US$30 billion available over a period of 15 months in areas such as agriculture, nutrition, social protection, water and irrigation.

This financing will include efforts to encourage food and fertiliser production, enhance food systems, facilitate greater trade, and support vulnerable households and producers.