The Market Monitor, Issue 44 – July 2019

Highlights

While 86 percent of the countries which WFP monitors did not observe significant increases in the seasonally adjusted prices of their food baskets during Q2-2019, these went up drastically for ten African countries. Gambia recorded the highest increase in its food basket’s price from Q1-2019, at 4 percent, as a result of adverse weather conditions and pest outbreak. Prospects of a delayed and poor harvest put upward pressure or. the price of tie food basket in Uganda. In Central African Republic, border closures and ongoing lean season contributed to the increased price of the food basket.

Main drivers for food price increases in other countries included: poor crop yields (Mozambique, Zambia); pest outbreaks (Congo); higher institutional demand (Ghana); seasonally degraded road conditions obstructing trade flows (South Sudan); and sustained strong export demand (Tanzania)

In Q2-2019, quarterly headline inflation was highest for Venezuela at 91.2 percent, followed by Zimbabwe (34.3 percent), Sudan (11.3 percent), and Iran (10.4 percent). While Venezuela continued to suffer from an unpredictable political situation and expanding economic sanctions, inflation in Zimbabwe was mostly due to its rapidly depreciating currency. The currencies of Argentina and Liberia continued to weaken as well, each losing around 11 percent of their value compared to Q1-2019.

Source: World Food Programme