Even though things have gotten a bit better globally, the cost of food is still very high. From April 2022 to January 2024, the food prices from farming went down by about 25%, mainly because of good harvests in big food-producing countries, lower shipping costs, and cheaper energy and fertilizer prices.
But, even though the prices of food in the world have gone down when measured in U.S. dollars, the prices of food within each country (in their own currency) keep going up. This is causing a big problem for people with lower incomes because it makes their cost of living go up. This is especially true in less wealthy countries.
- Domestic drivers of food price inflation
The prices of food that people buy every day are still going up a lot in many low- and middle-income countries. In some of these countries, the cost of food is going up by almost 30% compared to the previous year. This is causing a crisis for many people who are struggling to afford basic necessities.
Why is this happening? Well, even though global food prices have gone down, the prices within each country depend on other factors like how much of the food is imported. Many less wealthy countries are facing challenges like transportation issues, problems in their local markets, higher costs for marketing services, and issues in their local food supply. These countries also face economic problems like rising costs for imports, helping people during the COVID-19 pandemic, and having more debt.
- Effects on food security
The high cost of food is not just making it hard for people to afford meals, but it's also making it difficult for them to store food because many less wealthy countries don't have enough storage space. This, along with other economic problems, is leading to higher inflation (an increase in overall prices) within these countries.
Despite a decrease in global food prices, the situation is still causing a lot of problems. Not only are people finding it hard to afford food, but it's also making food security worse around the world. Many people are facing severe food shortages, and the number of people experiencing this is increasing.
The economic impacts of these problems are also serious. Many countries that are already dealing with food crises don't have enough money to help their people, and their economies are getting weaker. The global food crisis is far from over, and it needs continuous attention from the international community.
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