World Commodity Prices Could Rise 23 Percent This Year, World Bank Warns

The World Bank has warned that world commodity prices could rise by 23 percent in 2026. The warning appears in the institution's latest Commodity Markets Outlook report. Reuters reported the information on Wednesday.

The report cited rising fuel prices, disruption to commodity transport caused by war in the Middle East, problems with grain transport in the Black Sea, and high demand for safe-haven assets such as gold as the reasons for the expected increase.

According to the report, as various crises around the world have intensified, the prices of oil, natural gas, food products and metals have risen significantly this year.

In a statement, World Bank Deputy Chief Economist Ayhan Kose said, 'Commodity markets are facing several major shocks at the same time.'

He added, 'High energy prices and trade disruptions are pushing up the prices of various commodities, creating risks of negative effects on inflation, food insecurity and economic growth.'

According to the report, crude oil prices could rise by 32 percent this year. However, the report said oil prices could fall in 2027.

The report also said the situation could worsen further if the conflict in the Middle East intensifies and damage to Russia's oil infrastructure continues.

The World Bank report warned that a record-breaking strong El Niño, intensified attacks on Black Sea grain shipments during the Russia-Ukraine war, or a further rise in energy prices from the Iran war could trigger a 'food crisis'.

The report said, 'In an adverse scenario where these risks materialise together, Brent could average $105 per barrel in 2027 and food prices could be 12 percent higher than the baseline forecast.'