World Bank forecasts 32% energy price surge, 10% food cost jump in 2026

World Bank's latest Commodity Markets Outlook forecasts energy prices jumping 32% and food commodities rising 10% in 2026, pushing overall commodity costs up 23% before a 7% decline in 2027. The report, released Wednesday, blames Middle East conflict depleting oil reserves, shipping disruptions cutting grain supply, and El Niño threatening harvests.

For Nigeria, this means higher petrol and diesel costs—already at ₦617/liter—will likely climb further. Food inflation, already above 30%, could worsen as imported wheat, rice, and fertilizer become pricier. Transport costs will follow fuel increases, hitting everything from market goods to daily commutes.

The forecast assumes no major escalation in Middle East or Russia-Ukraine conflicts. World Bank Deputy Chief Economist Ayhan Kose warns higher commodity costs could deepen inflation, food insecurity, and slow economic growth, urging protection for poorest populations. The Bank has $50-60 billion available, including $25 billion in pre-arranged financing, to help vulnerable countries respond.

Nigeria's heavy reliance on fuel imports and food imports makes this forecast a direct warning. The Tinubu administration's subsidy removal already exposed consumers to global price swings—this outlook suggests more pain ahead.

With fuel and food costs set to rise globally, how will you adjust your household budget—cut non-essentials, seek local alternatives, or push for targeted government relief?

SOURCE: https://dailypost.ng/2026/10/29/world-bank-forecasts-higher-energy-food-commodity-prices/