The increase in global food prices has had a profound impact on households in low-income countries which spend a large share of their income on food, the UN’s Food and Agriculture Organisation (FAO) said on Tuesday, July 22.
Chinese diplomat and FAO director-general Qu Dongyu said in a video message to a meeting at the UN headquarters in New York that “we need a balanced set of actions at all levels, addressing both the demand and supply sides”.
“The [upcoming] 2025 edition of the State of Food Security and Nutrition (SOFI) report outlines key policy responses to strengthen countries’ capacities and transform agrifood systems to better withstand future shocks,” Qu added.
The SOFI 2025 report is set for release on July 28 at a UN Food Systems Summit in Addis Ababa, the Ethiopian capital.
According to FAO, food price inflation has consistently outpaced overall inflation since 2020, reflecting heightened volatility in agricultural markets and persistent pressures within agricultural and food markets.
It said food prices around the world have increased by more than 35 percent while average prices in the economy have risen by 25 percent.
It attributed the rise in global food prices to the COVID-19 pandemic, the war in Ukraine, extreme weather events and other global exogenous shocks such as surging energy prices and loose monetary policies.
SOFI 2025 recommendations
FAO said “low-income countries have borne the brunt of rising food prices”, adding that the median food inflation reached 30 percent in those nations in May 2023.
“At the height of the crisis in January 2023, 65 percent of low-income countries and 61 percent of lower-middle-income countries – home to over 1.5 billion people – experienced food inflation rates above 10 percent,” it added.
“A 10 percent increase in food prices in low-income countries is associated with a 3.5 percent rise in moderate or severe food insecurity and a 1.8 percent increase in the proportion of individuals experiencing severe food insecurity.”
The UN agency said the SOFI 2025 report will recommend a combination of policy responses to food price inflation and emphasise the role of policy coordination across countries.
These include targeted and time-bound fiscal measures, such as social protection programs to safeguard vulnerable households, credible and transparent monetary policies to contain inflationary pressures and strategic investments in agrifood research and development.
