World Bank forecasts 23% rise in commodity prices
By the AFREEQUE newsroom, based on IOL
Illustrative image · Vladimir Srajber · Pexels · Licence PexelsCommodity prices could rise by 23% by the end of 2026, while food prices are expected to increase by 10% this year, according to the World Bank. Conflicts, El Niño and rising energy and fertiliser costs could worsen inflation and food insecurity, AFP reports.
The World Bank forecasts a 23% rise in global commodity prices by the end of 2026, according to its Commodity Markets Outlook report cited by AFP and IOL. The institution attributed the increase to several simultaneous shocks, notably conflicts, trade disruptions and higher energy costs.
Food prices are expected to rise by 10% in 2026, followed by 7% in 2027. Energy prices could increase by 32% this year before slowing in 2027, provided conflicts in Iran and Ukraine do not intensify.
The World Bank warned that a worsening of attacks on grain shipments in the Black Sea, a particularly severe El Niño event or another surge in energy prices could trigger a food crisis. In this scenario, Brent could average 105 dollars a barrel in 2027 and food commodities could exceed baseline forecasts by 12%, according to the report.
Since the start of the war in Iran, the World Bank has provided 8.7 billion dollars in emergency aid to vulnerable countries. Its deputy chief economist, Ayhan Kose, called for the poorest populations to be protected and for support to be given to low-income countries facing high levels of debt.
