The World Bank has noted that domestic food price inflation remains high around the world including Sri Lanka.
In the latest World Bank update, issued yesterday (19), the World Bank ranked Sri Lanka at 7th position among countries with the highest food price inflation.
In November 2022, year-on-year consumer price inflation for food prices was 73.7 percent in Sri Lanka.
The World Bank said high incidence of climate shocks, depletion of foreign currency reserves, and depreciation of local currencies have kept food prices above normal levels and made healthy food less affordable in South Asia.
In November 2022, year-on-year consumer price inflation for food prices was 31.2 percent in Pakistan, 8.1 percent in Bangladesh, and 8.1 percent in Nepal.
The World Bank report said in Sri Lanka, a shortage and higher cost of fertiliser and reduced rainfall in the southern and central provinces may decrease harvests in the upcoming production season by up to 50 percent.
In addition the report noted, the challenging macroeconomic environment has led to a significant shortage of imported cereals (1.27 million of 2.2 million tonnes), and a (temporary) import ban has led to shortages of farm and food processing inputs.
The World Bank said information between August to November 2022 shows high inflation in almost all low-income and middle-income countries; 88.2% of low-income countries, 90.7% of lower-middle-income countries, and 93% of upper-middle-income countries have seen inflation levels above 5%, with many experiencing double-digit inflation.
The share of high-income countries with high food price inflation has risen to 81.8%. The countries affected most are in Africa, North America, Latin America, South Asia, Europe, and Central Asia.
