World Bank expects 16% rise in commodity prices in 2026

WASHINGTON, April 28. /TASS/. The commodity prices are expected to grow by 16% this year, the World Bank said in its new report on the prospects of situation development with consideration of implications from the US-Israeli war against Iran. "Overall commodity prices are forecast to rise 16% in 2026, driven by soaring energy and fertilizer prices and record-high prices for several key metals," the World Bank experts said. "Rising commodity prices caused by these shocks will increase inflation and dampen growth worldwide. In developing economies, inflation is now projected to average 5.1% in 2026 under the baseline assumptions—a full percentage point higher than was expected before the war and an increase from 4.7% last year," the World Bank noted. "Growth in developing economies will also deteriorate as higher prices for essentials weigh on incomes and exports from the Middle East face sharp curbs. Developing economies are expected to grow by 3.6% in 2026, a downward revision of 0.4 percentage point since January. Economies directly impacted by conflict will be hardest hit, and 70% of commodity importers and more than 60% of commodity exporters worldwide could see weaker growth than was projected in January," the analysts noted. "Commodity prices could rise even higher if hostilities escalate or supply disruptions from the war last longer than projected," the World Bank added.