Yemen Market and Trade Bulletin August 2025 - Issued on 30th September 2025

SHORT-TERM OUTLOOK AND IMPLICATION ON FOOD SECURITY: Yemen’s food security outlook remains critically concerning across all governorates, with significant challenges expected to persist until February 2026. In Government of Yemen (GoY) -controlled areas, recent central bank policies temporarily boosted the Yemeni riyal’s value and slightly lowered food prices; however, these gains are unlikely to be sustained without comprehensive economic reforms to address trade deficits, foreign exchange reserve gaps, and foreign currency shortages. Without such measures, currency depreciation and price inflation pose ongoing risks. Regional instability, high food prices, and declining household incomes will continue to hamper families' ability to access basic food needs. Meanwhile, in Sana’a-based Authority (SBA) areas, household purchasing power remains strained due to wage collapses and poor agricultural prospects for 2025. Food security risks are expected to intensify further amid recurring floods, localized dry spells, escalating conflict, and declining imports. The latest IPC analysis estimates that over 18 million Yemenis—approximately half the population—will remain in severe food insecurity through February 2026. While food availability in markets is generally stable, limited purchasing power severely restricts access for many households. Continuous monitoring of key factors such as food prices, government regulations, port and import operations, climate events, conflict dynamics, and regional crises— including potential spillovers from Middle East tensions—is vital.

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