Yemen Monthly Market Watch January 2013

Situation Report
Originally published



 The purchasing power of the households which depend on markets declined slightly in January 2013. Food access of poor households therefore declined and their food security situation remains precarious. It is hoped that the falls in international and internal wheat grain prices in January flow through to lower retail wheat flour prices in February.

 In December 2012, the 12-month general inflation level stood at 5.81 percent and food inflation was 7.17 percent. The general consumer price index (CPI) was recorded at 162.69 while the food CPI was 157.04 and cereals was 131.09.

 Between December 2012 and January 2013 the wholesale price of wheat flour remained unchanged whilst the price of wheat grain declined by 1.6%.

 In January 2013, the average nominal retail prices of wheat and wheat flour were 117YR/Kg and 134YR/Kg respectively. Between December 2012 and January 2013, the average retail price of wheat fell by 2.2 percent while that of wheat flour rose by 3.6 percent.

 The supply of essential food commodities within most monitored markets continued to be normal during January 2013. However, local conflicts in some areas in the south and north have disrupted the supply of commodities into local markets which have not been able to function normally.

 The average terms of trade (TOT) between a daily unskilled labour wage and wheat flour was 16.2Kg/day in January 2013, seven percent lower than the previous month (17.4Kg/day).

 The average TOT between a sheep and wheat flour was 246Kg/sheep in January 2013 which dropped by two percent from the previous month (251Kg/sheep) due to increases in the retail price of wheat flour.

 The FAO Cereal Price Index averaged 247 in January, down nearly three points (1.1 percent) from December. The index increased by 11 percent from the same time in 2012.

 After reaching their highest peak in November 2012, international wheat prices have declined during the last two months. The overall results of the market analysis suggest stable or even slightly improved food availability in the local markets during the month.