Higher food prices could push 10 mn into poverty: Yellen

US Treasury Secretary Janet Yellen warned on Tuesday that rising food prices, which have been pushed even higher by Russia’s invasion of Ukraine, could push upwards of 10 million people into poverty.

Moscow’s invasion of its neighbor, as well as the West’s punitive sanctions, which began in late February, has prompted a jump in crude oil and grain prices, as well as a reduction in fertilizer supplies.

Yellen warned that these factors risk aggravating the poor’s predicament around the world in an address at a Treasury event.

“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 held their spring meetings, suggesting that the Washington-based institutions might help vulnerable people, promote agricultural investments, and sort out supply chains for vital requirements like fertilizer.

She also suggested that the G20, whose finance ministers will convene on Wednesday, may employ a measure developed during the global financial crisis of 2008 to boost agricultural investment to help the world’s poor.

“We have a strong international system, and we need to work together now,” Yellen said.