A recent report published by Food and Agriculture Organization of the United Nations (FAO). Found that Yemen's food security is threatened by multiple factors: currency collapse, rising fuel prices (particularly in Internationally Recognized Government (IRG) controlled areas), financial constraints related to the ongoing crisis.
The report predicted that price increases for basic foods, livestock, and labor are anticipated in the coming months, especially in IRG controlled areas, impacting affordability and access.
FAO report emphasized that up to 17.1 million people (approximately 50% of the population) are projected to be food insecure by February 2025. While milling capacity and port infrastructure are adequate, potential fuel shortages could disrupt milling and inflate wheat flour prices. Therefore, monitoring global wheat prices, imports, and milling performance and efficiency is crucial.
FAO report noticed that despite a new Saudi deposit in December 2024 to stabilize the economy, the Yemeni riyal (YER) in IRG controlled areas experienced a historic depreciation in January 2025, reaching nearly 2,300 YER per US dollar – a 46% depreciation compared to the previous year. In Houthi rebels-controlled areas, the YER remained stable at around 530 YER/USD.
Regarding Fuel prices, the report found that in IRG areas, petrol and diesel rose by 10% and 14%, respectively, while in HOuthi rebels areas they fell by 6% and 21% in January 2025 compared to same time last year. Late January saw some price hikes.
The report also noticed that while most staple food prices remained stable month-on-month in Yemen, year-on-year prices were significantly higher in IRG controlled areas (6-27% increase) during January 2025 due to currency depreciation and high fuel costs, contrasting with lower prices in Hothi rebels controlled areas.
FAO report also highlighted casual labor wage rates, minimum food basket, terms of trade, food and fuel imports and livestock prices in both IRG controlled areas and Houthi rebels areas