Global food price increases affect households’ livelihood in developed and developing economies. It impinges on the socio-economic and food and nutritional security of nations, households, and individuals within households. At the national level, the effect may include a change in the overall socio-economic and political conditions through its consequence on the trade balance and change in the commodity and labor markets. At the household and individual levels, it affects the income and expenditure of households and the nutrition, health, and education of individuals within households ( Benson et al., 2008). The potential impact of increasing food prices on households’ welfare, mainly on poverty and food security, has been an interesting topic in the research and development community ( Benson et al., 2008; Attanasio et al., 2013; Amolegbe et al., 2021). However, existing empirical evidence is mixed and usually debatable ( Swinnen and Squicciarini, 2012). For instance, some researchers argue that increasing food prices reduces poverty ( Headey, 2018). These researchers associate the effect of food price increases on increasing supply and wage responses, as most of the world’s poor livelihood is strongly associated with agriculture. Other researchers suggest that rising food prices would increase poverty, mainly in urban areas and among poor rural households, as most resource-poor households are usually net buyers of different food groups ( Ivanic andMartin, 2008; Hoyos and Medvedev, 2011). For some researchers, increasing food prices have temporal effects. Accordingly, rising food prices increase poverty in the short run, as most poor households spend their budget on food. It reduces poverty in the long run by increasing smallholder producers’ wage rates and profits ( Ivanic and Martin, 2014). Nevertheless, conclusions from most empirical findings rely on various assumptions, and generalizing most results to the heterogeneous global population seems highly unlikely.