Prices

Inflation rates were above the five-year average in developing as well as developed economies in 2021. Inflation was especially high in Venezuela (+1590 per cent), Sudan (+360 per cent) and Cuba (+260 per cent). Another seven economies recorded consumer price increases of over 40 per cent and another eight over 12 per cent. The median inflation rate was 3.8 per cent among developing and 2.8 per cent among developed economies. Only seven economies experienced deflation in 2021, and only one (Samoa, -3.0 per cent) recorded a consumer price decrease of more than 1 per cent.

Trends in exchange rates

From 2020 to 2021, the yuan and the pound sterling appreciated by around 7 per cent against the United States dollar. Over the same period, appreciation of the euro was about half of that while the yen depreciated by nearly 3 per cent against the dollar.

The UCPIUNCTAD Commodity Price Index increased by 55 per cent on an annual basis in 2021, more than any other year over the last two decades. An increase in fuel prices, increasing by 86 per cent, accounted for most of this sharp increase in the overall index. However, even excluding fuels the index rose by 23 per cent and approached its previous 2011 peak. The commodity group with the highest prices compared to the base year of 2015 was minerals, ores and non-precious metals. These have doubled in price over the last six years.

Since March 2021 and through the first half of 2022, fuels were over 80 per cent more expensive than twelve months earlier. Other commodity groups also recorded positive year-on-year growth in prices through most of the same period. The net effect was the UCPI in August 2022 reaching its highest levels since the UCPI was first compiled and published in 1995.

Notably, food commodity prices have consistently had a positive year-on-year growth rate throughout 2021 and into 2022. These price increases abated in the second quarter of 2022 but in August 2022 food commodities were 42 per cent dearer than in the same month two years earlier. In comparison to other commodity groups, prices of agricultural raw materials have remained relatively stable.