The report released later this month reveals how the world between 2020 and 2024 experienced a dramatic increase in food prices driven by a combination of Covid-19-inflation, the war in Ukraine limits food and raw material movements and increased climate.
“The episodes described in this publication bring what we call a perfect storm,” said Mr. Torero Cullen.
First, he explained that the governments under the Covid-19 pandemic launched fiscal stimulus and relief packages, which increased demand and thus global inflation.
Russia’s invasion of Ukraine on a full scale composed this crisis. Before the war began in 2022, Ukraine was a key exporter of wheat, sunflower oil and fertilizer. The war not only limited these exports, but disturbed trade routes and pushed up fuel and input costs that reinforced inflation worldwide.
In addition, increasingly frequent and intense climate in larger producing regions – such as drought, flooding and heat waves – are further deteriorating food inflation.
Worldwide influences
Only in 2024 did prices return to the level before Kovid, which means that households fought for several years to afford food with major consequences.
As real wages fell as food prices rose, household purchasing power was eroded. Households responded by buying cheaper and less nutritious foods, reducing meal frequency and prioritizing meals often to certain family members and reducing intake for women and children.
Mr. Torero Cullen also explained that an increase in food prices directly correlates with an increase in moderate and severe food security. The effects of this were particularly harsh in Africa and West Asia, where food imports and depreciation of currency made food even more expensive.
As food prices rose, the nutritional results among children under five are aggravated. The Sofi report illustrated that a 10 percent increase in food prices led to an increase of 2.7 to 6.1 percent in moderate to severe waste, which has long-term effects on children’s development and public health systems.
In particular, these serious effects were uneven, mostly affecting low-income and African countries, which many still see deteriorating numbers. During the top of the crisis in January 2023, some low -income countries experienced food price inflation of up to 30 percent compared to 13.6 percent globally.
Political recommendations
Mr. Torero Cullen completed his briefing by outlining the political prescriptions described in the Sofi report.
He first emphasized targeted fiscal support. “Social protection measures are the most effective answer to food price tips,” he explained. “This will protect vulnerable populations without creating long -term fiscal risk or market distortion.”
He also highlighted to avoid disrupting trade disorders, coordinating monetary and fiscal policies, improving the market’s transparency and institutional emergency preparedness as essential components to avoid future crises.
“This Sofi emphasizes that inflation can undermine progress. It emphasizes our vulnerabilities, and it also brings the importance of strengthening resilience, including and transparency to avoid and minimize the risk of these problems,” he concluded.
