• Nine of 22 governorates are classified as High Alert Level driven by food consumption and coping outcome indicators and supported by microeconomic indicators.
• Approximately 40 percent of Yemenis are food insecure based on a recent national assessment (April 2022). Recent food insecurity (FIES1 ), shows that 42 percent of the families experienced food insecurity equivalent to IPC Phase 3+. This is supported by other food consumption indicators (FSC, HDDS, HHS and rCSI). Based on HHS, one percent of the population is facing very severe hunger, equivalent to IPC Phase 5 Catastrophe.
• Effects of the Russia - Ukraine war, which has precipitated global food shortages, have impacted many households in Yemen as prices of food, especially cereals, become unaffordable for vulnerable families. The export ban imposed by alternative import countries such as India further exacerbates the food price increase. In May, the FAO Cereal Price Index reached a record high and fell slightly (4.1 percent) in June due to a drop in international wheat prices. Since the start of the war, traders in Yemen have witnessed increased bulk purchases leading to hoarding and increased prices.
• Exchange rate volatility in IRG areas witnessed in the last quarter of 2021 has lessened slightly; however, the rial remains over 1,000 rials to USD. In Q2 2022, the rial averaged 1,050 in IRG areas and stable in SBA areas at an average of 550 rials to USD.
• Conversely, the cost of living is steadily increasing, with a very high cost of MFB recorded in 2022. The average MFB cost for Q2 2022 in IRG was 112,100, and for SBA 61,000, both the highest recorded quarterly MFB cost. The recent rise in the cost of MFB is primarily due to the high price of cereal in the international market.
• The impact of climate change is affecting livelihoods, with 2022 recorded as the third driest year in the past four decades, following 2014 (driest) and 2000. Rainfall is decreasing at an average of 0.3mm per annum, and extreme patterns, more droughts, and more floods, are expected in future. In the first half of the year, most farmers lost the first season of planting, with a third of households reporting reduced area planted. Floods are expected in July and August, affecting more than 40,000 people.
• Positive gains as a result of the truce are evident through improved access, increased availability of fuel, and improved mobility of human capital.