War in Ukraine: World Bank says there will be inflation until 2024

By Maureen Songne
Posted on Friday, 29 April 2022 17:39

A Tunisian supermarket that is already experiencing shortages, 8 April 2022. © Chedly Ben Ibrahim/Bloomberg/Getty
A Tunisian supermarket that is already experiencing shortages, 8 April 2022. © Chedly Ben Ibrahim/Bloomberg/Getty

According to the World Bank’s projections, commodity prices will increase significantly over the next two years due to the war in Ukraine. The impact of this may be felt for even longer if the conflict continues.

In its latest ‘Commodity Market Outlook’ report, which was published on 26 April, the World Bank is not very optimistic. According to the Bretton Woods institution, “the war in Ukraine, by causing a major shock to these markets, has altered global trade, production and consumption patterns such that prices will remain at historically high levels until the end of 2024”. This inflationary shock will last on both the energy and food fronts, with peaks not seen since the 1973 oil crisis, the Bank says.