Yemen Monthly Market Watch December 2013

Situation Report
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  • The overall analysis of the market information in December 2013 indicates that food availability has continued to be normal and food prices have declined slightly. Though households’ purchasing power is more or less similar to the same period in 2012, the food security situation of poor households who mainly depend on purchases is still sensitive to changes in market prices.

  • In November 2013, the general inflation rate of the country was 8.13 percent while that of food inflation was 7.85 percent. The general Consumer Price Index (CPI) during November 2013 was recorded at 174.04 while the food CPI was 168.87 and that of cereals stood at 143.93.

  • Between November and December 2013, the average wholesale prices of wheat flour decreased by about 1 percent while that of wheat remained unchanged, and they have both been relatively stable during the past five months.

  • During the reporting period, the average retail prices of wheat decreased by 2 percent while the prices of wheat flour increased by 0.6 percent compared with November. The market situation in Sa’ada has marginally improved but prices remained volatile as the conflict has continued.

  • The supply of essential food commodities continued to be normal except in areas being affected by conflict and is expected to remain unchanged in the few coming months.

  • In December 2013, the average TOT between the daily unskilled labour wage rate and the retail price of wheat flour stood at 18.24Kg/day. The TOT deteriorated by 0.5 percent compared with November, though it was 4 percent higher than during the same month last year.

  • During the month of reporting, the average TOT between a sheep and wheat flour was 242.4Kg/sheep – declined by 0.6 percent from November, and 4 percent lower than they were in December last year.

  • The FAO Food Price Index averaged 206.7 points in December 2013, nearly unchanged from November. The FAO Cereal Price Index averaged 191.5 points in December, down by 1.4 percent from November.

  • International wheat prices declined by about 5 percent between November and December 2013, but much lower than the price recorded during the same month last year – down by 16 percent.