Biggest commodity price shock in 50 years

In addition to deaths and destruction in Ukraine, the Russian invasion brought several significant shocks to the global economy. In addition to the geopolitical consequences of the war, reinforcing the downward trend in trade globalization and financial integration, new rounds of disruptions in supply chains and higher commodity prices have already led to downward revisions in economic growth projections, accompanied by higher inflation.

Commodity prices stabilized in April. However, the previous commodity price shock, intensifying trends that have been present since mid-2020, have already led to significantly higher price levels in 2022, and should remain there in the medium term, according to the World Bank’s Commodity Markets Outlook report released on April 26 (Figure 1).

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