The Middle East and North Africa (MENA) region has been hit by a sharp increase in commodity import prices triggered by the ongoing conflict in Ukraine, the International Monetary Fund said on Tuesday. According to the financial institution, oil importing countries have particularly been hit hard by the increase, which in turn has caused an increase in the cost of living. According to the IMF’s latest World Economic Outlook, oil prices are expected to settle at an annual average of around $107 in 2022, up $38 from 2021, after leaping to a peak of $130 per barrel after Russia launched its military operation in Ukraine. It pointed out that food prices accounted for about 60 percent of 2021’s increase in headline inflation in the MENA, excluding the countries of the Gulf Cooperation Council. “Hence, we project inflation to remain elevated in the region in 2022 at 13.9 percent—a significant upward revision relative to our previous projections in October,” it said.

Source: The North Africa Journal May 24, 2022 17:00 UTC