Downward Sticky Food Prices and Saudi Price Monitoring

The King Abdullah Chair for Food Security at the King Saud University in Riyadh will monitor local food prices and compare them with global market developments.

The concerns tie into a World Bank study that found that despite extensive subsidy regimes there is considerable pass through of global food price increases in Saudi Arabia and elsewhere in the Gulf.

Yet if global food prices come down, local prices do not follow suit. They are downward sticky, which is often blamed on profiteering and collusion of traders.

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