Daily Management Review

UN warns of 3.7% increase in global food prices


According to a report from the United Nations Conference on Trade and Development, global increases in the price of grain and ship chartering will result in a 3.7 percent increase in food costs (UNCTAD).

Graeme Churchard via flickr
Graeme Churchard via flickr
The research, which was made public on Tuesday, claims that military activity in Ukraine is preventing trade and logistics in both the nation and the wider Black Sea region. Additionally, the paper mentions that since 2020, grain prices and transportation costs have been growing, but that the current conflict in Ukraine has accelerated the trend and undone the brief drop in shipping costs.

"The cost of carrying bulk goods like grain increased by over 60% between February and May 2022. Consumer food prices will rise by 3.7 percent as a result of the escalating grain and global freight costs", the report stated.

The predicament is made worse by the rising cost of energy.

"The average global price of low-sulfur fuel oil had increased by 64% by the end of May 2022 compared to the start of the year. When combined, these rising expenses result in higher prices for consumers and pose a risk of widening the poverty gap," the research states.

In order for Ukrainian grain to reach foreign markets, UNCTAD feels it is vital to open Ukraine's ports to international shipping. Additionally, UNCTAD believes it is important to expand investment in transport services and assist trade.

source: un.org