Lower middle economies, including Nepal, may suffer higher food prices. As dry bulk shipping charges have risen sharply. Further, pushing up their food import costs. Experts have warned that if inflation isn’t tamed, it will bring social unrest.
Between February and May 2022, the Baltic Dry Index—a global benchmark for dry bulk freight rates. This increased by 59 percent, according to The War in Ukraine and Its Effects on Maritime Trade Logistics.
This could lead to an additional increase of 3.7 percent in consumer food prices globally. Lower middle income countries will be hit the hardest.
The report said that among four economies—high income, upper middle income, lower middle income and low income. The lower middle income countries may suffer an additional 4.2 percent increase in consumer food prices.
