Global commodity prices are expected to drop this year at the fastest clip since the beginning of COVID-19. A World Bank report says that clouds the prospective growth of approximately two-thirds of the developing economies that depends on exports.
The Commodity Markets Outlook says the drop in prices is expected to bring little relief to the almost 350 million people around the world who are facing food insecurity. While food prices are expected to drop by eight percent this year, they will be at their second-highest level since 1975. Food price inflation is at 20 percent globally, the highest level in 20 years.
“The surge in food and energy prices after Russia’s invasion of Ukraine has largely passed due to slowing economic growth, a moderate winter, and reallocations in commodity trade,” the report says.
Overall, commodity prices are expected to fall by 21 percent in 2023, relative to last year.