War in Ukraine dealt a 'major shock' to commodities markets: World Bank
The World Bank issued a report on Tuesday that said the war in Ukraine dealt a major shock to commodity markets and altered global patterns of trade, production and consumption in ways that will keep prices at historically high levels through the end of 2024.
"Overall, this amounts to the largest commodity shock we’ve experienced since the 1970s," Indermit Gill, the World Bank’s vice president for equitable growth, finance and institutions, said in a statement.
The report said energy prices are expected to rise more than 50% in 2022 before easing in 2023 and 2024.
Wheat prices are forecast to increase more than 40%, putting pressure on developing economies that rely on wheat imports, especially from Russia and Ukraine, according to the World Bank.
Metal prices are projected to increase by 16% in 2022 before easing in 2023, according to the report.
Crude oil prices are expected to average $100 a barrel in 2022, its highest level since 2013 and an increase of more than 40% compared to 2021, the report said. Oil prices are expected to moderate to $92 in 2023, which is above the five-year average of $60 a barrel, the World Bank said.
-ABC News' Christine Theodorou





