Surging food prices take a toll on poor economies
In places like Sri Lanka and Egypt, they add to existing strains
THE SRI LANKAN economy was in danger well before Russian tanks began rolling into Ukraine. Burdened by foreign debts and squeezed by the effects of the pandemic on its tourist receipts, Sri Lanka’s government dithered over approaching the IMF for help as the year began. Now a devaluation of the currency and the impact of the war on commodity markets is sending consumer prices soaring. Troops have been deployed to calm the crowds queuing for fuel, and a debt default may be unavoidable. As the prices of everything from oil and gas to corn and wheat surge, other countries may fear a similar fate.
This article appeared in the Finance & economics section of the print edition under the headline “Menu costs”
Finance & economics April 2nd 2022
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- India grapples with the new realities of the global oil market
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- Under unprecedented sanctions, how is the Russian economy faring?
- Surging food prices take a toll on poor economies
- The White House wants to close a tax loophole used by the ultra-rich
- Will dollar dominance give way to a multipolar system of currencies?
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