World Bank sees sharp decline in global commodity prices

The World Bank on Thursday forecast a substantial decline in global commodity prices during the current year but Pakistanis would have to brace for 21pc average annual inflation in the next fiscal year. In its latest Commodity Markets Outlook, the World Bank expected global commodity prices to decline this year at the fastest clip since the onset of the Covid-19 pandemic, clouding the growth prospects of almost two-thirds of developing economies that depend on commodity exports. “The drop in prices, however, is expected to bring little relief to the nearly 350 million people across the world who face food insecurity”, said the bank, adding that although food prices were expected to fall by 8pc in 2023, they would be at the second-highest level since 1975. The report came a day after the Ministry of Finance forecast 21pc annual inflation for the next fiscal year — down from a record 28.5pc during the current fiscal year. The MOF also forecast the economic growth rate for the next fiscal year at 3.5pc against 0.8pc anticipated for the current fiscal year.