The Strategist

World Bank gives outlook on commodity and food prices

04/27/2022 - 06:43

According to a forecast released by the World Bank, record high commodity and food prices will remain around the world until 2024.

"The situation in Ukraine has delivered a significant blow to commodities markets," the document reads, "altering global trade, production, and consumption patterns in such a way that prices will continue at historically high levels until the end of 2024."

Meanwhile, the World Bank has declared that energy costs have risen to their greatest level since the 1973 oil crisis. This year, their price is expected to rise by more than one-and-a-half times. Gas should be doubled in price, and coal is expected to grow by 80%.

Brent oil is expected to reach $100 a barrel in 2022.

According to the bank's projections, non-energy commodity prices will rise by 20%. The most significant increases are projected in commodities where Russia and Ukraine are major exporters. Wheat prices, for example, are expected to soar by 40% to a new high.