The World Bank is concerned that the drought in Ukraine, the United States, Russia, and Kazakhstan, as well as the continuous rains in many European countries will lead to an increase in food prices.

The news center of the United Nations Organization announced this in a statement.

"Almost continuous rain is causing problems for the wheat crop in many European countries, whereas the wheat crops in Russia, Ukraine, and Kazakhstan have been hit hard by a lack of rain," the World Bank said.

According to the World Bank, wheat prices have risen by more than 50% since and corn prices have risen by more than 45% percent since mid-June 2012.

"Food price volatility creates unpredictability in the market and poses fundamental food security risks for consumers and governments. Volatility also discourages needed investment in agriculture for development due to increased financial risks and uncertainty for producers and traders," the World Bank said.

The bank fears that rising food prices will have a negatively effect on the situation of the poor.

According to the World Bank, there are nearly one billion hungry people worldwide.

"One-third of all child deaths globally are attributed to under-nutrition," said the financial institution.

According to the World Bank, malnutrition contributes to infant, child, and maternal illness; decreased learning capacity; lower productivity and higher mortality.

As Ukrainian News earlier reported, the Ministry of Agrarian Policy and Food estimates grain producers' losses as a result of drought at UAH 13.6 billion.

The Weather Center has lowered its forecast for this year's grain harvest from 44 million tons to 43 million tons.
 

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