The shrinking value of the Nigerian naira and currencies of most developing economies are driving up food and fuel prices in ways that could deepen the food and energy crises that many of them already face, according to the World Bank’s latest Commodity Markets Outlook report.
In US dollar terms, the prices of most commodities have declined from their recent peaks amid concerns of an impending global recession, the report documented.
It further noted that from the Russian invasion of Ukraine in February 2022 through the end of last month, the price of Brent crude oil in US dollars fell nearly six percent. Yet, because of currency depreciations, almost 60 per cent of oil-importing emerging market and developing economies saw an increase in domestic-currency oil prices during this period.
According to the Washington-based bank, nearly 90 per cent of these economies also saw a larger increase in wheat prices in local-currency terms compared to the rise in U.S. dollars.
It said elevated prices of energy commodities that served as inputs to agricultural production have been driving up food prices.
