By John Lee.
A report by the UN's World Food Programme (WFP) has said that the food security situation in Iraq is now being exacerbated by the global impacts of the Ukraine-Russia war.
The two countries are the key suppliers of food, energy, and agricultural inputs, globally.
Russia and Ukraine jointly are responsible for almost one third of global wheat supply. In addition, Russia and Ukraine are the key exporters of sunflower oil, accounting for more than three-quarters of sunflower supplies to international markets.
The conflict is causing price volatility in the global food market because of higher logistics cost, lower supply and panic purchase. The countries with high dependency on food imports, like Iraq, are directly being impacted.
Highlights of the report:
- The prices of essential food commodities are increasing and impacting the purchasing power of vulnerable Iraqis.
- Wage rates are not revised over past two years and Ukraine-Russia war is exacerbating the already deteriorating food security situation.
- The benefits from higher oil price will offset by increased import bill.
- Despite sluggish economic growth, inflation has been on the rise - and with it the risk of stagflation.