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Soaring Food Prices Threaten Recent Economic Gains in the EU

  • Publication | 2025
Global Food and Nutrition Security

The surge in food prices following the 2021 economic rebound has become a significant concern for households, particularly low-income ones, in Bulgaria, Croatia, Poland, and Romania. Food price inflation, which surpasses general inflation rates, risks worsening poverty and food insecurity in these countries. This paper explores the distributional impacts of rising food prices and the effectiveness of government response measures. Low-income households, who allocate a larger share of their income to food, are disproportionately affected and are struggling to cope with unexpected expenses, leading to increased difficulties in accessing proper nutrition. Simulations indicate that rising food prices contribute to higher poverty rates and greater income inequality, especially among vulnerable populations. They also suggest that the main poverty-targeted social assistance schemes offer critical support for the extreme poor, but expanding both coverage and benefits is vital to shield all at-risk individuals. Targeted policies that balance immediate relief with long-term resilience-building are essential to addressing the challenges posed by escalating food prices.

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Authors
Robayo, Monica; Lucchetti, Leonardo Ramiro; Delgado-Prieto, Lukas; Badiani-Magnusson, Reena
Geographic coverageEuropean UnionBulgariaCroatiaPolandRomania
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21 Jul 2025

Related organisation(s)World Bank
Knowledge service | MetadataGlobal Food and Nutrition Security | Food crises and food and nutrition security | Food price crisis
Digital Europa Thesaurus (DET)incomehouseholdnutritionpolicymakingpovertyinflationsocial protection
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