A recent study by the World Bank has shown high inflation in many low- and lower middle-income countries, with inflation higher than 5% in 76.5% of low-income countries (a decrease of 11.0 percentage points since the last update on May 16, 2025), 54.5% of lower-middle-income countries (4.5 percentage points higher), 45% of upper-middle-income countries (2.0 percentage points lower), and 14.5% of high-income countries (4.0 percentage points lower). In real terms, food price inflation exceeded overall inflation in 60% of the 161 countries where data is available.
The study covering the period between February and May 2025 shows that since the last update on May 16, 2025, agricultural and cereal price indices closed 1% lower, and the export price index closed at the same level.
Maize and rice prices closed 4% and 1% lower, respectively, and wheat prices closed 3% higher. On a year-on-year basis maize, wheat, and rice prices are 2%, 20%, and 31% lower, respectively. Maize prices are 13% higher, wheat prices 4% lower, and rice prices 2% higher than in January 2020.
“The June 2025 AMIS Market Monitor reports that global markets for wheat, maize, rice, and soybeans remain broadly stable, with no major supply disruptions expected in the near term. Stock levels are generally adequate, and trade flows are continuing smoothly, but regional crop conditions are mixed, and weather-related risks are increasing,” World Bank stated.
The Food Price Index of the Food and Agriculture Organization of the United Nations declined for the second month in a row, with cereal and vegetable oil prices dropping the most.
World Bank says wheat prices fell because of strong harvests in the Black Sea region and large exports from Russia. Maize and rice prices also declined, supported by good crop progress and a decrease in export restrictions.
“Although conflict and extreme weather are widely recognized drivers of hunger, a World Bank report highlights another persistent cause in Africa: transportation inefficiency. Across Africa, food supply chains are long, fragmented, and vulnerable to delays, breakdowns, and waste. On average, perishable goods travel 4,000 kilometers over 23 days—4 times as long as in Europe. As a result, more than one-third of perishable food is lost before reaching consumers,” World Bank adds.
A report by the International Food Policy Research Institute shows that food systems remain too exposed to shocks, from climate extremes to conflict and economic stress.
In May 2022, the World Bank Group and the G7 Presidency co-convened the Global Alliance for Food Security, which aims to catalyse an immediate and concerted response to the unfolding global hunger crisis.
Francis Muli
Francis Muli is a passionate digital journalist with over seven years of experience in crafting compelling stories across various platforms. His major focus is in business, politics and current affairs. He brings a keen eye for detail and a commitment to uncovering the truth.
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