The forecast predicts a 7% decline in prices in both 2025 and 2026, driven by weak global economic growth, a growing oil surplus, and political uncertainty, according to the Commodity Markets Outlook released today.
“The decline in energy prices is helping to ease global inflation, while the reduction in rice and wheat prices has made food more accessible in some developing countries,” states the World Bank.
However, despite these declines, commodity prices remain above pre-pandemic levels, with projections showing increases of 23% and 14% respectively in the prices of 2025 and 2026 compared to 2019.
“Commodity markets are helping to stabilize the global economy,” said Indermit Gill, chief economist and senior vice president of Development Economics at the World Bank, in a statement.
The economist pointed out that “the drop in energy prices contributed to the decline in global consumer price inflation,” but this trend may not last. Therefore, “governments should take this opportunity to put their public finances in order, prepare economies for business, and accelerate trade and investment.”
