Global Food Prices Hit The Roof In 2022: FAO

Global prices for food commodities like grain and vegetable oils were the highest on record last year even after falling for nine months in a row, the UN Food and Agriculture Organization (FAO) said, as Russia’s war in Ukraine, drought and other factors drove up inflation and worsened hunger worldwide, Reuters reported.

Photo Insert: For the whole year, the FAO Food Price Index averaged 143.7 points, more than 14% above the 2021 average, which also saw large increases.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, dipped by 1.9% in December from a month earlier, the Rome-based organization said Friday.

For the whole year, it averaged 143.7 points, more than 14% above the 2021 average, which also saw large increases.

The December decline was led by a drop in the price of vegetable oils amid shrinking import demand, expectations of increased soy oil production in South America, and lower crude oil prices. Grain and meat were also down, while dairy and sugar rose slightly.

“Calmer food commodity prices are welcome after two very volatile years,” FAO chief economist Maximo Torero said in a prepared statement.

“It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs, and with prices of rice increasing, and still many risks associated with future supplies.”

Last year, the UN organization’s Food Price Index hit the highest level since its records began in 1961, according to FAO data.

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