Governments must take measures to prevent a food crisis scourge the world, as the Russian invasion of Ukraine raise prices of cereals and interrupts the supply, said the Organization for Economic Cooperation and Development (OECD).
(See: Inflation without food, at 6.5% due to rents and restaurants).
The Paris-based organization estimates that there is enough cereal production to feed the world’s population, but prices have skyrocketed and there is a risk that the production will not reach those who need it most.
“It is most needed in the Middle East and Africa, where it could cause not only famine but also political instability.“, he said in Bloomberg Television OECD chief economist Laurence Boone.
advocated for a increased foreign aid to low-income countries and improved logistics for transporting agricultural products.
(See: Corn, meat and nitrogen, among those that could drop in price).
Rising food prices are also a key factor driving inflation and undermines global economic prospects.
The OECD cut its projection for the expansion of the world economy to 3%, from the 4.5% he had forecast before the war.
(See: US food imports increase in Venezuela).
“The disruption and cuts to grain and energy arising from the war are obviously increasing inflation.Boones said.
“Higher inflation is undermining consumer confidence and therefore consumption“, hill.
(See: Facts that keep food prices near their record).
BLOOMBERG
