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. Overall, rising food prices and potential wheat shortages affect the poor more because they allocate a higher share of their expenditure to food. 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.

Source: The North Africa Journal May 26, 2022 17:56 UTC