Yemen Market and Trade Bulletin August 2026 – Issued on 20th September 2026

Country: Yemen Source: Food and Agriculture Organization of the United Nations Please refer to the attached file. SHORT-TERM OUTLOOK AND IMPLICATIONS ON FOOD SECURITY: While Yemen’s acute food security crisis—with 18. 3 million people facing acute food insecurity and over half the population in urgent need of humanitarian assistance—remains heavily driven by import dependency, rising prices, global humanitarian funding deficits, and severe climate impacts, conditions have been worsened by rapid frontline escalations in recent months. The resumption of fighting and the SBA capture of Yemen’s southern Red Sea coast have driven severe secondary impacts: according to IOM between June and mid-September 2026, displacement reached about 120 000 individuals (about 20 000 households), with 115, 000 displaced during the first two weeks of September alone—concentrated primarily in Ta’iz (57%) and Lahj (26%) governorates. The territorial shifts and road closures have cut off key transit corridors, doubling transit times for goods transport, while restricting staff mobility and aggravating humanitarian access. This supply chain disruption, coupled with a 10% hike in domestic fuel prices announced by the SBA-run Yemen Petroleum Company, acts as a compounding driver of severe food insecurity —triggering a major inflationary wave across basic food commodities, agricultural inputs, transport, and essential services. KEY HIGHLIGHTS: EXCHANGE RATES: The Yemeni rial remained stable in GoY-controlled areas at around YER 1, 555/USD in August—up 4% year-on-year and 6% above the three-year average—helping cushion immediate import costs despite fragile fiscal conditions. FOOD PRICES: Staple food prices remained broadly stable in August, with minor monthly shifts (sunflower oil up 2%, others under 1%) and most key commodities—including wheat flour, rice, and beans—falling year-on-year and remaining at or below three-year averages. MINIMUM FOOD BASKET (MFB): While Minimum Food Basket (MFB) costs remained stable—rising 1% from July but staying below 2025 and three-year averages—weak purchasing power and irregular government salaries continue to restrict household food access. FOOD AND FUEL IMPORTS: Recorded wheat and flour imports fell sharply in August (down 48% month-on-month and 32% below three-year averages), while fuel imports collapsed even further—dropping 67% from July and 89% below historical averages, with no petrol or diesel reaching northern ports. FUEL PRICES: Fuel prices showed mixed monthly trends in August—diesel rose 3% while petrol fell 1%—but both remained significantly elevated year-on-year and above three-year averages, continuing to drive up essential operational costs across transport, agriculture, water, and food distribution. TERMS OF TRADE (ToT): Agricultural terms of trade remained strong (4% above last year and 15% above three-year averages), whereas casual-labor terms of trade remained severely depressed—standing 13% below 2025 levels—highlighting continued purchasing-power stress for casual earners. CASUAL LABOR WAGE RATES: Agricultural wages held steady in August—remaining above 2025 and three-year averages—while unskilled casual wages saw a slight 1% monthly gain but stayed severely depressed year-on-year (-14%), highlighting stagnant non-agricultural earning potential. LIVESTOCK PRICES: Livestock prices continued to normalize in August with a 1% monthly drop for goats and sheep following the May pre-Eid peak, remaining significantly lower year-on-year (down 22% and 18%, respectively) but slightly above three-year historical averages.

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