US says higher food prices could push 10 million into poverty
Rising food prices that have been pushed even higher by Russia's invasion of Ukraine could force upwards of 10 million people into poverty, U.S. Treasury Secretary Janet Yellen warned on Tuesday.
Moscow's invasion of its neighbor and retaliatory sanctions imposed by the West beginning in late February have caused a spike in crude oil and grain prices and constricted fertilizer supplies.
In a speech at a Treasury event, Yellen warned that these factors risk exacerbating the situation of the poor worldwide.
"The war has made an already dire situation worse. Price and supply shocks are already materializing, adding to global inflationary pressures, creating risks to external balances, and undermining the recovery from the pandemic. I want to be clear: Russia's actions are responsible for this," Yellen said.
"Early estimates suggest that at least 10 million more people could be pushed into poverty due to higher food prices alone."
Yellen spoke as the World Bank and IMF are holding their spring meetings, and suggested the Washington-based lenders could provide aid to vulnerable people, boost investments in agriculture and sort out supply chains for critical needs like fertilizer.
She also suggested that the G20, whose finance ministers will meet on Wednesday, could use a tool first launched during the 2008 global financial crisis to up investment in agriculture to aid the world's poor.
"We have a strong international system, and we need to work together now," Yellen said.
Source: Agence France Presse
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