According to a UN Program for Development (UNDP) report, 71 million people in low-income countries have been pushed into poverty by rising food and energy costs. This has happened in three months.
In a press release, the UNDP notes that this acceleration of poverty is "significantly faster than the shock from the Covid-19 pandemic," and partly blames the war on Ukraine for the skyrocketing prices. Russia denies it.
UN Programme says that targeted cash transfers to households are more fair and cost-effective than general energy subsidies. UNDP also believes that countries will require support from multilateral systems "to make ends met".
UNDP's report warns that "as interest rates rise due to the soaring inflation, there is the risk of triggering new recession induced poverty that will further exacerbate and deepen poverty around the globe."
This document was reviewed by 159 countries. The most dangerous areas for the United States are the Balkans, the Caspian Sea Region, and sub-Saharan Africa.
Achim Steiner, UNDP chief, stated that "unprecedented price rises mean that many people around the globe can no longer afford the food they used to be able to afford yesterday" in a statement.
"This cost-of-living crisis is driving millions into poverty at a shocking rate" He also said that "the danger of an increase in socio unrest is growing every day."
Armenia, Burkina Faso and Burkina Faso are among the countries that will suffer the most from rising prices.