The World Bank warns that global commodity prices are set to increase by 23 per cent by the end of 2026, with energy prices at four-year highs due to the war on Iran and food prices driven up by global conflicts and El Nino, AFP reports.
“Commodity markets are being hit by several major shocks at once,” says the lender’s deputy chief economist Ayhan Kose in a statement, accompanying the release of the organization’s Commodity Markets Outlook report.
“Higher energy costs and trade disruptions are driving up prices across a broad range of commodities, threatening to worsen inflation, food insecurity, and economic growth.”
Food prices are expected to rise by 10 percent in 2026 and another seven percent next year, due to conflict-affected grain supply lines, the effects of an extreme El Nino phenomenon and high fuel and fertilizer prices.
