New research: Local food and fuel prices more than triple in some of the world’s most at risk communities (ACTION AID)

https://actionaid.org/news/2022/new-research-local-food-and-fuel-prices-...

While the average cost of wheat products like pasta has increased by more than 50% in local markets and communities in the 13 countries surveyed, families in Lebanon, which is heavily dependent on imports from Ukraine and Russia, are spending as much as 275% more than they were at the end of February.  

In the Horn of Africa, where 20 million people are already facing severe hunger due to prolonged drought, communities in Somaliland are now spending more than double (163%) as much on a loaf of bread. Average prices for cooking oil have increased by over 60%, but in some areas of Somaliland costs are up by as much as 260%.  

ActionAid’s analysis finds that, at local community level, food and fuel price hikes are far outstripping already record-breaking rises globally*, suggesting the Ukraine war has exacerbated ongoing food and fuel price challenges in communities most impacted by the climate crisis, humanitarian emergencies, and political and economic turmoil. The survey of market traders and community members in 13 countries across Africa, Asia, Latin America and the Middle East, finds that the cost of essentials have increased by: 

• Fertiliser up by an average of 83% (rising by up to 196% in the Elfeta area of Ethiopia)  
• Cooking oil up by an average of 64% (rising by up to 260% in the villages of Googeysa and Xidhinta in Somaliland)  
• Petrol up by an average of 63% (rising by up to 253% in Myanmar)  
• Cooking gas up by an average of 60% (rising by up to 175% in one area of Zimbabwe)  
• Pasta up by an average of 53% (rising by up to 275% in the Baalbek area of Bekaa district, Lebanon)  
• Bread up by an average of 48% (rising by up to 163% in villages of Ceel-Giniseed and Teysa, Somaliland)  

Teresa Anderson, ActionAid International’s global climate justice lead, says:  

“The conflict in Ukraine has created a perfect storm of skyrocketing prices for food, fuel and fertiliser, disproportionately affecting local communities who barely have any belt left to tighten. 

Our survey found that in some places, prices are now double, triple or almost four times as much compared to before the war started. 

The world is now on track for a global food crisis that looks set to be far more deadly, devastating and prolonged than that of 2007-08. Governments and international institutions must take urgent action to avert catastrophic hunger on an unprecedented scale.” 

Just over two months on from the start of Russia’s invasion of Ukraine, families in existing hunger hotspots around the world are already feeling the burden of skyrocketing prices.  

Mothers reported having to take their children out of school to be able to afford to buy food and shared their heartache at only being able to provide one meal a day for their families. In Somaliland, one woman spoke of giving her children black tea to stave off hunger pangs.  

Other people said they have become sick from drinking unclean water from ponds, and many families are incurring debt to cover essential expenses such as medical costs, seeds and fertiliser.  

As well as the soaring cost of wheat products and cooking oil, the cost of fuel and fertilisers is also rising at an alarming rate.  

ActionAid’s survey shows the cost of petrol and cooking gas has gone up by around 60% on average. However, one community in Myanmar reports that the cost of petrol has soared by 253%, and families in Zimbabwe report petrol increases as high as 227% and cooking gas increases up by 175%. 

Chemical fertilisers, a key component of industrialised farming systems, require large amounts of fossil fuels for their production. The survey shows that the average price of fertiliser has already increased by more than 80%. However, in one district of Ethiopia prices have gone up by as much as 196%. With the planting season about to begin or already underway in many parts of the world, crop yields and farming incomes are set to be hit hard in 2022.

Joy Mabenge, Country Director of ActionAid Zimbabwe, says:

“The price increases since the start of the Ukraine war are further eroding living standards and are severely affecting the poorest and most marginalised.” 

Many of the countries where the survey was carried out rely heavily on imported goods, making them hugely susceptible to changes in global markets.  

In Somaliland, Maryan Muhumed Hudhun, a smallholder farmer and mother of six, told ActionAid:

“We don't produce anything in Somaliland. Whatever food we consume here is made outside, such as rice, pasta or oil.  

“Whatever impacts the world will impact us as well. I am worried about not being able to get water, or food even.” 

Sifa, a 40-year-old mother of seven from the Democratic Republic of the Congo, said:

“My family and I no longer [get enough food]. We have had to reduce the quantity and quality of our meals. The low production [of food] has pushed us to become beggars.”