Monitoring the agri-food system in Myanmar: The rising costs of diets and declining purchasing power of casual wage laborers: June 2020 - February 2023
Abstract
We assess changes in food prices and purchasing power of casual wage laborers based on large-scale surveys of food vendors (fielded from June 2020 until February 2023) and households in rural and urban areas and in all state/regions of Myanmar.
Key findings
Over the full period (June 2020 - February 2023), the cost of the healthy diet rose by 72 percent and the common diet by 82 percent.
Prices for rice –the major staple– increased by 62 percent between March 2022 and February 2023.
The costs of a common and healthy diet increased especially over the year 2022, by 50 and 51 percent respectively between Q1 of 2022 and Q4 of 2022.
Diet costs increased more in rural areas compared to urban areas and more in the Dry Zone and coastal areas – which are more affected by conflicts – compared to the national average.
The value of daily wages of construction and agricultural wage laborers relative to common and healthy diet costs declined by about 25 and 28 percent over the year 2022.
Food costs are outpacing wages, making food increasingly unaffordable for wage earners who are among the most vulnerable household groups in Myanmar, particularly in rural areas.
Recommended actions
Food should be available at low costs to avoid food insecurity and nutrition problems in the country; assuring a well-functioning agri-food system should therefore be a priority for all
stakeholders.
Casual wage workers are among the poorest and their situation is worsening. They should therefore be targeted in social safety net programs.
It is important to closely monitor food prices and the wages of the poor - they are good proxies for purchasing power and welfare and can be measured at high frequency.