#Title

Food prices rise globally
World Bank’s latest food security update shows
PHOTO: AFP
STAR BUSINESS REPORT
Average wheat, maize, and rice prices rose 20 per cent, 29 per cent and 8 per cent respectively worldwide in September compared to a year ago, according to the Food Security Update of the World Bank.
Similarly, wheat and maize prices were 33 per cent and 30 per cent higher compared to those in January last year. Rice prices were 12 per cent lower during the period, however.
Compared to two weeks ago, the agricultural price index was 3 percentage points lower.
Domestic food price inflation remains high around the world. Information between May to August 2022 shows high inflation in almost all low-income and middle-income countries.
About 88.2 per cent of low-income countries, 91.1 per cent of lower-middle-income countries, and 93 per cent of upper-middle-income countries have seen inflation levels above 5 per cent, with many experiencing double-digit inflation.
The share of high-income countries with high inflation has also increased sharply, with about 82.1 per cent experiencing high food price inflation.
According to the Bangladesh Bureau of Statistics, food inflation in the country stood at 8.2 per cent in July, the latest for which data was available.
The World Bank Update showed after some brief relief in the summer of 2022, fertiliser prices are beginning to rise again.
In the last week of August, prices increased significantly for ammonium nitrate by 9 per cent to 960 euros per tonne and for calcium ammonium nitrate by 13 per cent to 850 euros per tonne.
“Limited fertiliser production in Europe, mainly caused by tight natural gas supplies and high energy prices, will likely lead the European Union to become a net importer of fertiliser, putting pressure on global markets,” it said.
In addition to increasing energy prices, policy measures such as export restrictions in countries such as China, Belarus, and Russia, all major fertiliser suppliers, have limited global fertiliser availability.
In addition to increasing energy prices, policy measures such as export restrictions have limited global fertiliser availability.
“The war in Ukraine has altered global patterns of trade, production, and consumption of commodities in ways that will keep prices at high levels through the end of 2024 exacerbating food insecurity and inflation,” said the WB.
High food prices have triggered a global crisis that is driving millions more into extreme poverty, magnifying hunger and malnutrition. The number of people who are experiencing acute food insecurity and will need urgent assistance is likely to climb to 222 million people in 53 countries and territories, according to a report by the Food and Agriculture Organisation and the World Food Programme.
Following the start of the war in Ukraine, trade-related policies imposed by countries have surged. The global food crisis has been partially made worse by the growing number of food trade restrictions put in place by countries with the goal of increasing domestic supply and reducing prices.
As of September 29, some 20 countries have implemented 29 food export bans, and six have implemented 12 export-limiting measures, the update added.

Saudi non-oil sector keeps up steady growth
REUTERS, Dubai
Saudi Arabia’s non-oil private sector growth remained solid in September helped by a relatively strong pickup in output and new orders, albeit at a slower pace than in August as confidence softened, a survey showed on Tuesday.
The seasonally adjusted S&P Global Saudi Arabia Purchasing Managers’ Index (PMI) for the whole economy eased to 56.6 in September from 57.7 in August, staying far above the 50 mark denoting growth.
“Saudi Arabia’s non-oil private sector economy retained an impressive pace of growth during September, especially against the backdrop of increasingly challenging global economic conditions,” wrote David Owen, economist at survey compiler S&P Global Market Intelligence.
“Both output and new orders rose at rates above their averages for their current 25-month growth sequences, whilst confidence in the quality of goods and services provided meant firms expect to successfully convert into hard contract wins a high proportion of what is an extremely positive pipeline of new business.”
The output sub-index, which measures business activity, slipped to 59.5 in September from 61.5 in August. September’s growth pace was exceeded this year only in August and June.
Inflationary pressures “presently appear to be contained,” Owen said, as costs rose at a “broadly average rate, combined with a keenness amongst non-oil companies to maintain competitive pricing policies”.
The employment subindex showed the slowest pace of increase since January.
“Where growth was reported, this was linked to higher levels of activity and increased production requirements. Construction recorded the strongest rise in employment of the four sectors covered by the survey. Services endured a marginal fall,” the PMI report said.
Expectations for output over the next 12 months remained in positive territory, though the sub-index slipped for a third consecutive month.
High food prices have triggered a global crisis that is driving millions more into extreme poverty, magnifying hunger and malnutrition