Food prices in Yemen have increased by 20 percent since the beginning of 2021
English - Saturday 17 July 2021 الساعة 02:12 pm
Aden, NewsYemen, special:
The Famine Early Warning System Network of the United States Agency for International Development said that the cost of the minimum food basket in Yemen increased by 20 percent during the first five months of 2021.
In its report, "Food Security Outlook in Yemen, June 2021 to January 2022", the network expected that the conflict and poor macroeconomic conditions will continue to cause further price increases during the second half of this year.
The network indicated that all future rounds of the import financing mechanism for Yemeni letters of credit have been suspended due to insufficient government revenues, depletion of Saudi financial support, and the rapid devaluation of the local currency.
The network pointed out that the last funding for the main Yemeni imports from the Saudi deposit was in January 2021, expecting that the suspension of the import financing mechanism will lead to an increase in prices.
The Famine Early Warning System Network explained that importers' access to foreign currencies from exchange companies at increased costs contributed to a faster increase in food prices by increasing the costs of importing food and fuel.
It indicated that the rise in food and fuel prices led to a further decrease in the purchasing power of families due to the expected inability of most families to expand their income earning.
