June 2023 Global Price Watch

In West Africa, staple food price trends were mixed but trended above the five-year average due to increased production and transportation costs and macroeconomic challenges. However, prices in several markets of the region were below the previous year, reflecting the rebound in production. In Nigeria, inflation was exacerbated by the recent removal of fuel subsidies and the unification of exchange rates that caused further devaluation of the Naira.

In East Africa, staple food prices declined seasonally in most markets in Somalia, Burundi, Uganda, and Tanzania due to the availability of green harvest supplies and increased supply from the ongoing May-to-August harvest. Prices increased typically in northern South Sudan, Ethiopia, and Kenya as supplies tightened and in Sudan due to conflict-related disruptions. Livestock prices increased in most markets because of improved body conditions and high demand.

In Southern Africa, maize prices seasonally decreased in May as supplies from recent harvests increased availability. Prices remained, however, mostly above 2022 levels due to elevated production costs and reduced stocks. Inflationary pressures largely eased across the region as global oil prices declined; however, several economies remain vulnerable to food price shocks due to domestic macroeconomic challenges. Zimbabwe experienced rapid depreciation of its national currency in May, putting upward pressure on inflation. Flooding and landslides in eastern DRC reduced market function and drove staple price increases.

In Central America, staple grain prices were stable or declined due to consistent supplies from carryover stocks and imports. White maize prices declined due to adequate grain availability. Wholesale and retail prices of rice and red and black beans were stable and lingered at above-average levels. In Haiti, local yellow maize prices seasonally increased, while imported food prices were stable or declined due to the appreciation of the Haitian Gourde. In Venezuela, the depreciation of the Venezuelan dollar resulted in moderate price increases for animal protein, vegetables, and edible oil.

In Central Asia, wheat prices were stable or declined slightly in May due to increased availability from ongoing harvests, humanitarian supplies, and above-average carryover stocks in Kazakhstan. In Yemen, staple food prices were stable in SBA areas due to government price caps, easing of import restrictions, cheaper local wheat, and declining fuel prices, while prices increased moderately in IRG areas due to conflict, related market disruptions, high transport costs, and currency depreciation.

International staple food markets in May were sufficiently supplied. Except for rice, global staple food prices decreased due to recent harvests and increased production prospects. Crude oil and fertilizer prices decreased due to lower demand and concerns about economic growth. However, prices remained above their five-year averages.