Food and energy prices will continue to rise: gloomy forecast of the World Bank The World Bank predicts a further increase in global food prices due to disruptions in the supply of grain, unfavorable weather conditions, as well as an increase in fuel and fertilizer prices, dpa reports. Food prices may rise by another 7% in 2027, following an expected increase of about 10% year-on-year in 2026. According to the organization's forecast, energy prices will rise by almost a third this year, but will begin to fall in 2027. In general, raw material prices may increase by 23% in 2026, after which their prices will also decrease. One of the main reasons for the increase in prices was the US war in Iran, which effectively stopped the transportation of raw materials through the Strait of Hormuz. Even months after the start of the conflict, shipping volumes along this strategically important route remained below pre-war levels. The World Bank's forecast is based on the assumption that conflicts affecting the global supply of goods will not escalate significantly. However, the organization warns that energy prices could rise even more if the conflict in the Middle East widens and damage to Russian oil infrastructure continues. Additional risk factors may include higher than expected energy prices and the strengthening of the El Niño weather pattern. According to the World Bank, the combination of these factors could trigger a food crisis and increase the number of people living in extreme poverty. Extreme poverty is defined as living on less than $3 a day. The organization estimates that approximately 811 million people in the world currently live in such conditions. Subscribe to Alpha News VK Zen Website TikTok Facebook Instagram YouTube X.

Food and energy prices will continue to rise: gloomy forecast of the World Bank The World Bank predicts a further increase in global food prices due to disruptions in the supply of grain, unfavorable weather conditions, as well as an increase in fuel and fertilizer prices, dpa reports. Food prices may rise by another 7% in 2027, following an expected increase of about 10% year-on-year in 2026. According to the organization's forecast, energy prices will rise by almost a third this year, but will begin to fall in 2027. In general, raw material prices may increase by 23% in 2026, after which their prices will also decrease. One of the main reasons for the increase in prices was the US war in Iran, which effectively stopped the transportation of raw materials through the Strait of Hormuz. Even months after the start of the conflict, shipping volumes along this strategically important route remained below pre-war levels. The World Bank's forecast is based on the assumption that conflicts affecting the global supply of goods will not escalate significantly. However, the organization warns that energy prices could rise even more if the conflict in the Middle East widens and damage to Russian oil infrastructure continues. Additional risk factors may include higher than expected energy prices and the strengthening of the El Niño weather pattern. According to the World Bank, the combination of these factors could trigger a food crisis and increase the number of people living in extreme poverty. Extreme poverty is defined as living on less than $3 a day. The organization estimates that approximately 811 million people in the world currently live in such conditions. Subscribe to Alpha News VK Zen Website TikTok Facebook Instagram YouTube X.