Similarly, food prices are expected to increase by an additional 14 percent in 2022, after reaching historical highs in 2021. The effect of high commodity pricesHigher inflation is one of the most direct impacts of rising commodity prices. Food prices accounted for about 60 percent of last year's increase in headline inflation in the Middle East and North Africa, excluding the countries of the Gulf Cooperation Council. For low-income countries, higher wheat prices alone will be a significant blow, worsening current accounts by around 1.2 percent of GDP on average. Near-term policy trade-offs have become increasingly complex for oil-importing countries in the Middle East and North Africa.

Source: The North Africa Journal May 25, 2022 02:32 UTC