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World Bank: Most Low-Income Countries Facing Soaring Food Price Inflation

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World Bank: Most Low-Income Countries Facing Soaring Food Price Inflation

A new report by the World Bank reveals that the majority of low- and lower-middle-income countries are grappling with high food price inflation, with over 76% of low-income nations experiencing inflation rates above 5%.

The World Bank study, which covers data from February to May 2025, shows that food price inflation has remained stubbornly high in developing economies despite overall global commodity price stability. While the number of low-income countries with inflation over 5% dropped by 11 percentage points since mid-May, 76.5% still face elevated prices. Among lower-middle-income countries, 54.5% recorded inflation above the threshold — a 4.5 percentage point increase.

In contrast, food inflation is significantly lower in high-income countries, with only 14.5% reporting rates above 5%. Upper-middle-income countries also saw a modest decline, with 45% still grappling with high prices.

Globally, food price inflation has outpaced overall inflation in 60% of the 161 countries analyzed, highlighting the specific burden rising food costs are placing on vulnerable populations.

The agricultural and cereal price indices registered a 1% decline since May 16, 2025, while the export price index remained flat. Maize and rice prices dropped by 4% and 1%, respectively, while wheat prices saw a 3% increase.

Year-on-year data shows that maize, wheat, and rice prices are down by 2%, 20%, and 31%, respectively. Compared to January 2020, however, maize prices are 13% higher, wheat is 4% lower, and rice is 2% higher.

The June 2025 AMIS Market Monitor reports that global markets for key staples — wheat, maize, rice, and soybeans — remain broadly stable. “Stock levels are generally adequate, and trade flows are continuing smoothly, but regional crop conditions are mixed, and weather-related risks are increasing,” the World Bank noted.

The Food and Agriculture Organization (FAO) of the United Nations also reported a decline in its Food Price Index for the second consecutive month, driven largely by drops in cereal and vegetable oil prices. Wheat prices fell primarily due to strong harvests in the Black Sea region and large Russian exports, while maize and rice prices benefited from positive crop progress and eased export restrictions.

However, challenges persist. The World Bank highlights that in Africa, transportation inefficiency significantly contributes to food insecurity. “Food supply chains are long, fragmented, and vulnerable to delays. Perishable goods in Africa travel an average of 4,000 kilometers over 23 days — four times longer than in Europe. As a result, over a third of perishable food is lost before reaching consumers,” the report stated.

The International Food Policy Research Institute (IFPRI) adds that food systems globally remain overly vulnerable to shocks such as climate extremes, conflict, and economic instability.

To combat the deepening crisis, the World Bank and the G7 launched the Global Alliance for Food Security in May 2022. The initiative aims to coordinate a global response to rising hunger and build resilience into food systems.

In other news:MPs Plot Murkomen’s Impeachment Over Shoot-to-Kill Directive

World Bank: Most Low-Income Countries Facing Soaring Food Price Inflation

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