World Bank warns energy costs could drive food prices 7% higher in 2027
Global food commodity prices are projected to rise by 7% in 2027, following an expected 10% increase in 2026, as higher energy costs, weather-related supply pressures and disruptions to exports drive prices upward. The post World Bank warns energy costs could drive food prices 7% higher in 2027 appeared first on Nairametrics .
The World Bank has cautioned that energy costs could lead to a 7% increase in global food commodity prices by 2027, following a projected 10% rise in 2026. This projection is based on factors such as higher energy costs, adverse weather conditions affecting supply, and disruptions to exports. The report anticipates a 9% increase in grain prices for the same period.
While favorable harvests in certain regions may help mitigate global price hikes, weather-related disruptions may result in more significant price spikes in specific locations. The early impact of El Niño on tropical commodity supplies is also expected to contribute to the increase. Higher energy prices and disruptions to food exports via the Black Sea, following attacks on maritime infrastructure, are projected to have a greater effect.
Despite a 3% increase in total grain supplies for the 2026-2027 season compared to 2024-2025, regional disparities in agricultural production could lead to varying price trends across commodities. While food and grain prices are expected to rise, beverage prices are forecasted to fall by 24% in 2026 due to improved cocoa and coffee production after previous setbacks.
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