The World Bank has forecast that food and energy prices will remain elevated through the end
of 2024 due to global disruptions in trade and production.
Energy prices are expected to rise 50% in 2022 before easing in 2023 and 2024, the World
Bank said in its latest “Commodity Markets Outlook” report.
Prices for agriculture products and metals are projected to increase almost 20% in 2022 before
moderating in coming years.
The war in Ukraine could result in longer lasting inflation and delay clean-energy transition as
countries seek alternative trade routes and ramp up production of commodities, according to the
report.
The sharp rise in energy prices and fertilizer costs could lead to food shortages and stall the
progress in reducing global poverty, the World Bank said.
The bank forecasts wheat prices will jump more than 40%, reaching an all-time high in nominal
terms this year, putting pressure on developing economies that rely on imports, especially from
Russia and Ukraine.
Brent crude oil is expected to average $100 U.S. a barrel in 2022, its highest level since 2013,
with prices for coal and natural gas in Europe at all-time highs. Natural gas in Europe will more
than double this year from 2021, forecasts the World Bank.
The World Bank, an international policy maker that offers research and economic assistance to
governments, urges policy makers to focus on tackling the underlying imbalance between
supply and demand, instead of prioritizing energy subsidies and tax breaks which, it says, could
worsen the situation.
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