Highlights

In February 2024, more than half of the surveyed households in Yemen (53 percent) indicated lacking access to adequate food, reaching the highest recorded level over the past 17 months. This represents an increase by merely one percent from a month earlier and by eight percent compared to a year before. In IRG-controlled areas, the prevalence of inadequate food consumption reached 57 percent in February 2024, up by 10 percent year-on-year. This is largely linked to the worsening economic conditions in the south. At the same time, around 51 percent were unable to access adequate food in areas under Sana’a-based authorities, an increase of 11 percent compared to November and by eight percent year-on-year. This is mainly associated with the ongoing pause in food assistance in the north. Moreover, around 55 percent of the surveyed households in Yemen adopted extremely negative food-coping strategies (rCSI >= 19), up by 10 percent year-on-year. This trend was much higher in the north (reported by 58 percent) compared to the south (48 percent).

The volume of fuel imported through Red Sea ports (Al-Hodeidah, As-Salif and Ras Issa ports) during the first two months of the year had increased by 12 percent compared to NovemberDecember 2023, and by 34 percent on annual basis. Conversely, fuel imports via the southern ports of Aden and Mukalla decreased by 23 percent compared to November-December and by 28 percent year-on-year. Close monitoring is necessarily over the coming months, particularly amid the ongoing geopolitical tension in the MENA region and the increased insurance costs for Yemeni ports.

The total volume of food imports via Red Sea ports during the first two months of 2024 had increased by seven percent compared to Nov-Dec 2023, and by 51 percent year-on-year. At the same time, the amount of food imported via the southern ports of Aden and Mukalla was nearly four times higher than the level recorded in Nov-Dec, while being three percent down the level of Jan-Feb 2023. Essential food commodities were available in the Yemeni markets during February 2024. The lagged effect of the Red Sea crisis has not yet materialized, largely due to the existing orders and ships already in transit. However, it is anticipated that new orders will decline, primarily due to the increase in marine insurance costs.

General Food Assistance (GFA) has been paused in areas under Sana’a based authorities since December 2023, while WFP continued to support approximately 3.6 million people in IRG-controlled areas with reduced rations. WFP's needs-based plan is only seven percent funded for the period from April to September 2024. The food security situation has notably deteriorated for GFA beneficiary households who are no longer receiving assistance in the north; the prevalence of poor food consumption of these beneficiaries increased from 23 percent in the baseline (cycle 5 in 2023) to 38 percent during February 2024, while the prevalence of inadequate food consumption increased from 58 percent to 66 percent during the same period.

In IRG-controlled areas, the Yemeni riyal slid to an all-time low of YER 1,668/USD at end of February 2024, losing around 26 percent of its value against the US dollar compared to the previous year. Key drivers include low foreign currency reserves and revenue shortages due to reduced crude oil exports and remittance inflows. The worsening economic situation has also led to rising food and fuel prices to unprecedented levels and delaying in payments of civil servant salaries. The second batch of KSA deposit, worth 250 million dollars, was reportedly released to CBY-Aden in February, however it had minimal impact on the exchange rate. In contrast, the exchange rate in areas under Sana’a-based authorities appreciated by three percent on annual basis, reaching YER 528/USD by the end of February.

Pump prices for petrol and diesel reached their all-time high levels in IRG-controlled areas during February 2024, with a 27 percent increase on annual basis. This is mainly due to the ongoing currency depreciation in the south. On the other hand, pump prices for petrol and diesel remained unchanged in areas under Sana’a-based authorities during February 2024, while they exhibited a decline by six and 21 percent, respectively, compared to the previous year.

The global FAO Food Price Index (FFPI) reached in February 2024 its lowest level recorded over the past three years. The index value slightly decreased by merely one percent compared to the previous month, while remaining 11 percent lower than February 2023 level. All subindexes witnessed an annual decline except for sugar, which increased by 12 percent year-onyear. This is mainly due to the tighter global supply outlook. In Yemen, sugar prices also saw an annual increase of eight percent in the north and 46 percent in the south.

In February 2024, the cost of the minimum food basket (MFB) reached its all-time high level in IRG-controlled areas, marking an increase by three percent from the previous month and by six percent compared to a year before. This is primarily attributed to the ongoing currency depreciation in the south and increased fuel prices. All governorates in the south exhibited an annual increase in the cost of MFB, with the highest rise recorded in Ma'rib and Shabwah (up by 18 and 15 percent, respectively, year-on-year). WFP mVAM data revealed that nearly 17 percent of surveyed households in the south reported high food prices as a main challenge to access an adequate diet. On the other hand, the cost of MFB remained unchanged in areas under Sana’a-based authorities during February 2024, while being still nine percent lower than February 2023 level. However, the repercussions of the current tension in the MENA region, coupled with the gap triggered by the pause in food assistance could negatively impact food prices in the north during the coming months.