In this Article
A comprehensive policy approach is needed to address rising food prices, combining short-term relief with long-term resilience through fiscal interventions, strong social protection, coordinated macroeconomic policies, trade and structural reforms, and investments in data, infrastructure, and innovation.
Image Source: FAO
The Food and Agriculture Organization of the United Nations (FAO) reports that millions worldwide still suffer from hunger and malnutrition due to the lack of safe, accessible, and affordable food. Low-income countries are disproportionately affected by food price inflation, as they spend more on food. The rising cost of agrifood systems leaves small producers struggling and straining their purchasing power and policy responses.
The global pandemic prompted food price inflation, with governments mobilizing around USD 17 trillion in fiscal support to protect jobs and stabilize markets. Central banks reduced interest rates, launched bond purchases, and provided emergency liquidity. However, supply chain strains and global demand rebounded, contributing to rising food prices in 2022 and 2023.
Figure 1. Policies can both contribute to food price inflation and serve as part of the solution
Governments worldwide implemented fiscal, monetary, and trade policies to address food price strikes with key measures on targeted fiscal support, strengthened social protection systems, coordinated macroeconomic policies, trade reforms, and investments in data, infrastructure, and innovation. FAO analysis of 153 countries and over 10,000 policy records found that context-specific, well-targeted strategies were most effective, with recent global responses more coordinated and less disruptive than past crises. While inflation placed a significant burden on households, particularly the poorest, these policy improvements and institutional frameworks helped mitigate the most severe impacts.
Reference:
FAO, IFAD, UNICEF, WFP and WHO. 2025. The State of Food Security and Nutrition in the World 2025 – Addressing high food price inflation for food security and nutrition. Rome. https://doi.org/10.4060/cd6008en
