Impact of food prices increase among Lesotho’s poorest
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At the moment, Lesotho is experiencing a large increase in the price of maize, the main staple food in the country. The current drought induced by El Niño is increasingly affecting countries in Southern Africa, especially South Africa, which is the main source of cereal imports for Lesotho, with the potential to deteriorate the food security in the country. The food prices inflation is causing a decrease in staple food consumption among the poor of the country. Rising food prices reduce access to food among net food buyers. This effect is most severe among poor households, because they spend a higher share of their income on food. This report, simulates, with a demand system, the effects of an increase in the price of food commodities. The data used were collected for the evaluation of a social protection policy, the Child Grants Programme, which offers unconditional cash transfers to poor households with orphans and vulnerable children.