Main factors behind price fluctuations in food market and its impacts on purchasing power of people in Azerbaijan
Date Issued
2023-12-08
Author(s)
Allahverdiyev, Seymur
Abstract
Increasing food prices, high rates of inflation have significantly affected the purchasing power of
consumers over the years. Price fluctuations led to the higher food insecurity, limited access to the
important nutrition items and resulted in aggravation of poverty. The current scale of global crisis
on hunger and undernutrition is tremendously increasing. Due to WFP (2023), it is estimated that
345 million people in 79 countries are currently facing the harsh levels of food insecurity in the
year of 2023. These statistics have doubled since 2020 from the period of COVID-19. This
represents a surprising increase of 200 million people in comparison to before pandemic levels. It
seems that ongoing price fluctuations in the food market is going to continue as the global conflicts
are aggravating and world population is increasing. Market prices for agricultural goods has
significantly increased a year after Russia invaded Ukraine. Though there is a slight decrease in
prices in comparison to early 2022, but still extension of the war between world’s largest exporters
of wheat and other essential crops to the second year puts many countries to face the excessive
food insecurity. According to IMF (2023) Fragile and conflict-affected states, home to 1 billion
people, are at particular risk.
consumers over the years. Price fluctuations led to the higher food insecurity, limited access to the
important nutrition items and resulted in aggravation of poverty. The current scale of global crisis
on hunger and undernutrition is tremendously increasing. Due to WFP (2023), it is estimated that
345 million people in 79 countries are currently facing the harsh levels of food insecurity in the
year of 2023. These statistics have doubled since 2020 from the period of COVID-19. This
represents a surprising increase of 200 million people in comparison to before pandemic levels. It
seems that ongoing price fluctuations in the food market is going to continue as the global conflicts
are aggravating and world population is increasing. Market prices for agricultural goods has
significantly increased a year after Russia invaded Ukraine. Though there is a slight decrease in
prices in comparison to early 2022, but still extension of the war between world’s largest exporters
of wheat and other essential crops to the second year puts many countries to face the excessive
food insecurity. According to IMF (2023) Fragile and conflict-affected states, home to 1 billion
people, are at particular risk.