Highlights

The monthly average value of the Yemeni rial slightly depreciated by one percent from the previous month in areas under the internationally recognized government of Yemen (IRG); it has now lost 25 percent of its value at the beginning of 2022. Earlier this year, Saudi Arabia and the United Arab Emirates pledged support packages worth two billion dollars to the IRG. If these materialized, they could mitigate the pressure on the rial and domestic food prices in the south. The exchange rate remained stable in areas under the Sana’a-based authorities (SBA) at around YER 558/USD.

Local fuel prices continued to decrease countrywide for the third month in a row, largely due to improving fuel supply. Month-on-month, pumping prices for petrol decreased by six percent in IRG-controlled areas and by nine percent in SBA-controlled areas. A similar trend was also observed for diesel prices (IRG: -26%; SBA controlled areas: –7%). Nonetheless, fuel prices in Yemen remain higher than the levels in the same month of 2021.

In October 2022, the global Food Price Index (FFPI) remained at the level of the previous month. This is 15 percent down from the all-time high in March 2022. For 12 months, global food prices have been at elevated levels, including above the levels of the 2011 price crisis.

The cost of the minimum food basket slightly decreased from the previous month by two percent in IRG-controlled areas and by five percent in areas under the SBA. This was mainly driven by decreasing local fuel prices, reduced port fees in Aden and authorities’ influence on suppliers, all at a time when global food prices and the currency exchange rate remained relatively stable. However, economic food access for Yemenis is still constrained. The cost of the MFB is 21 and 18 percent above 2021 levels in IRG-and SBA-controlled areas respectively.

From January to October 2022, food imports via Al Hodeidah and As Salif ports were seven percent higher than last year. They decreased by 38 percent through the southern ports of Aden and Al Mukalla. Following the UN-mediated agreement to resume Ukrainian grain exports, two WFP-chartered vessels destined for WFP operations in Yemen as of October carried a total of 67,500 metric tons of wheat grain, one of which arrived mid-October with 37,0000 mt.

The expiration of the truce agreement in early October did not affect the fuel supply into Yemen. The flow of imported fuel through Red Sea ports in October 2022 was nearly three times the level of October 2021. As a result, total fuel imports during Jan-Oct 2022 increased by 249 percent compared to the same period last year.

The expiration of the truce agreement in early October did not affect the fuel supply into Yemen. The flow of imported fuel through Red Sea ports in October 2022 was nearly three times the level of October 2021. As a result, total fuel imports during Jan-Oct 2022 increased by 249 percent compared to the same period last year.

Despite the important amount of funding received so far in 2022 and the efforts to prioritise assistance to the populations facing the highest needs, WFP is still constrained to distribute reduced rations equivalent to 65 percent of the standard food basket, providing around 1,100 kilocalories per person per day from the 5th cycle onwards.

Food insecurity remained at critically high levels in October. 55 percent of surveyed families in IRG-controlled areas and 47 percent in areas under the SBA could not access enough food to meet their minimum consumption needs.

The annual deterioration in the northern governorates (21 percent) was much higher than those across the south (10 percent). In 17 out of 22 governorates, the share of inadequate food consumption is beyond the “very high” threshold of = 40 percent.

Source: World Food Programme

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