Rising food prices "terrifying" in Yemen
English - Saturday 02 April 2022 الساعة 01:14 pm
Aden, NewsYemen, special:
Yemen is witnessing a continuous rise in the prices of the main food commodities, which rose sharply between 2014 and 2021, and this had a direct impact on the living conditions of citizens, and also led to the expansion of the poverty gap and the deepening of deprivation in the country.
The Yemeni citizen was exposed to more severe waves of inflation during the years 2015-2021, where the inflation rate ranged between 34% and 47%, nearly 10 times the rate of inflation in developing countries and in the world.
The waves of inflation raised the prices of goods and services for the citizen, and the living standards of the population deteriorated, especially those with low incomes and the poor, which pushed more of them into the cycle of poverty and deprivation.
In addition, the average per capita income of GDP contracted between 2014-2021, with a cumulative decline rate of 63%, the erosion of the real value of that income due to the continuous escalation of inflation, causing millions of people to fall into extreme poverty.
Data indicate that the national average retail price per kilogram of wheat rose to the highest value, which amounted to about 423 riyals / kg at the end of September 2021, compared to a value of 122 riyals / kg in 2014, an increase of 246.7%.
While the national average retail price per kilogram of flour increased to 502 riyals at the end of September 2021, compared to 142 riyals / kg in 2014, an increase of 253%.
According to a note on poverty in Yemen, issued by the World Bank in June 2017, the Yemeni family’s consumption of wheat and flour in general is increasing, which represents nearly a third of the average monthly income.
According to information, the national average price of non-basmati rice per kilogram rose to 729 riyals/kg at the end of September 2021, compared to a value of 215 riyals/kg in 2014, with an increase of 239%.
The national average retail price per kilogram of sugar reached the highest value, which amounted to about 619 riyals / kg at the end of September 2021, compared to a value of 191 riyals / kg in 2014, with an increase of 224.1%.
The development of the national average in cooking oil prices shows a significant increase of concern, as the price of a liter reached about 1595 riyals at the end of September 2021, an increase of 259.2% compared to 444 riyals / liter in 2014.
The index for the lowest cost of survival food basket for seven people per month is more important and gives an overall picture of the levels of rising cost of living.
The components of the minimum food basket as approved by the Food Security and Agriculture Cluster include: 75 kg of white flour, 10 kg of red beans, 8 liters of imported vegetable oil, 2.5 kg of sugar, 1 kg of salt.
The data indicate that the national average for the minimum cost of a food basket at the end of September 2021 increased to 66,807 riyals, which represents an increase of about 287% compared to 2014.
The average at the levels of the southern and eastern governorates is about 85,919 riyals, while it is estimated at about 47,575 riyals as an average in Sana’a, and compared to the end of 2020, the national average for the minimum cost of the food basket increased by about 41.6%.
The collapse of the purchasing value and the deterioration of the national currency are the most important factors and reasons that contributed to the rise in inflation rates.
The national average of the dollar exchange rate against the Yemeni riyal rose from 214 riyals to the dollar at the end of 2014 to 900 riyals to the dollar in September 2021, an increase of 320.5%.
The depreciation of the riyal has led to a significant exacerbation of food prices nationwide, which imports about 90% of food and other basic commodities, and made it difficult for ordinary people in Yemen to obtain basic foodstuffs.
The devaluation of the currency has resulted in multiple and devastating risks at the level of food and basic commodities prices, leading to an increase in the cost of the minimum food basket by five times its cost at the end of 2014.
The urban profiling study in Al-Houta, issued by the United Nations Human Settlements Program in 2020, confirms that the severe shortage of fuel contributes significantly to the high prices of food, water and other basic commodities.
The most prominent channels of transmission of the impact of the oil derivatives crisis on prices are represented by the increase in transport wages by rates ranging between 70% and 150%, as the monthly changes in fuel prices coincided with the change in the prices of basic food commodities: wheat, flour, sugar, rice, and oil.
Data indicate that the national average price of diesel rose from 150 riyals per liter at the end of 2014 to reach the end of September 2021 to 661 riyals per liter, an increase of 340.7%.
Oil prices at the national level rose from 158 riyals per liter at the end of 2014 to 650 riyals per liter at the end of September 2021, an increase of 311.4%.
On the other hand, the national average price of a domestic gas cylinder increased from 3,548 riyals in 2015 to 4,251 riyals in 2018, reaching the end of September 2021 to about 9,187 riyals, an increase of 158.9% compared to 2015.
According to the analysis conducted by the Famine Early Warning Network, the oil derivatives crisis represents the worst cases that increase the risk of famine in many Yemeni governorates, especially if the oil derivatives crisis continues for 3-4 months or more.
