Changes in global food prices are being watched closely by importers and households across East Africa, where many staples such as wheat flour, rice, sugar and cooking oil arrive by sea from distant markets.
Economists say movements in world prices usually take several weeks to reach local shops, as traders work through existing stock and new shipments arrive. Shipping costs, insurance and currency exchange rates can also push prices up or down, sometimes more than the world price itself.
Who feels it first
Families on low incomes are usually the first to feel the effect, because food takes up a large share of their spending. "When the price of oil or flour goes up even a little, the poorest families cut back on meals," said an economist who studies regional markets.
Importers say they try to smooth prices by buying in larger quantities when costs are low, but limited storage space and access to credit make this difficult for smaller traders.
Some households are adapting by buying smaller quantities more often, switching between brands or replacing imported rice with locally grown maize and sorghum when prices rise. Retailers say customers have become more careful about comparing prices between shops.
Analysts say investment in local production, such as sorghum, maize and sesame, together with better storage, could help the region become less exposed to sudden swings in world markets over time.
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