The World Bank warns: war in Ukraine will make food more expensive

The World Bank warned that the war in Ukraine will lead to expensive food and energy over the next three years, adding to fears that the global economy is heading towards the weak regrowth and high inflation of the 1970s.

According to an analysis by the World Bank, there is a risk that high material costs primewhich will last until the end of 2024, lead to a state of “stagflation”, that is, a slow activity accompanied by strong pressures on the cost of living.

And the British newspaper, “The Guardian,” said in a reportage seen by “Al Arabiya.net”, that the latest expectations of the World Bank on commodity markets prime indicate that in the past two years the world has seen the largest increase in energy since the 1973 oil crisis and the largest jump in food and fertilizer prices since 2008, while energy and food costs are likely to fall from current levels.

It was expected to remain above the media in the five years ending at the end of 2024.

Due to disruptions in trade and production caused by the Russian invasion of Ukraine, the bank expects a 50% increase in energy prices questyear and the average price of Brent crude oil is expected to reach $ 100 per barrel in 2022, the highest level since 2013 and an increase of more than 40% compared to 2021

Prices are expected to drop to $ 92 in 2023, but will still be much higher than in the last five years, when they hit one media of $ 60 a barrel.

Gas prices too in Europe is expected to rise in 2022 to double from 2021, while coal prices are expected to rise by 80%.

The World Bank also predicts that wheat prices will rise by more than 40% questyear, putting pressure on economies in via of development which depend on imports of wheat from Russia and Ukraine.

“Overall, this is the biggest shock to the subjects prime we have seen since the 1970s and, as it was then, the shock was exacerbated by increased restrictions on trade in food, fuel and fertilizer, “World Bank Vice President Endermit Gill said.

According to The Guardian, these developments are beginning to raise fears of a “stagflation” as policymakers must seize every opportunity to boost domestic economic growth and avoid actions that would harm the global economy.

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