Agency of Food Price Index, which tracks monthly changes in international prices, averaged 125.7 points – up 28.1% from 2020.
FAO Senior economist Abdolreza Abbassian explains that, typically, high prices are expected to ease as output increases to match demand.
This time, however, input costs are consistently high, a global pandemic is underway, and climate conditions are more volatile than ever before.” less likely to be optimistic about a return to more stable market conditions even in 2022. ”
End of the year
The data show that at the end of the year, world food prices fell slightly, due to a significant drop in international prices of vegetable oil and sugar.
The average food price index reached 133.7 points, down 0.9% compared to November, but still up 23.1% over the same month last year. Only milk increased that month.
The cereal price index also fell 0.6%; For the full year, however, it hit its highest yearly level since 2012, up 27.2 percent.
The commodities that increased in price the most were corn, up 44.1% and wheat, up 31.3%. One of the world’s other staple foods, rice, lost 4%.
Oil and sugar
The Vegetable Oil Price Index fell 3.3% in December on weaker global import demand, possibly related to concerns about the impact of rising prices. COVID-19 circumstances leading to delays in the supply chain.
During the whole year, The oil index hit an all-time high, up 65.8% from 2020.
Another staple is sugar, which fell 3.1% last month from November, hitting a five-month low.
This shows concern over the impact of the Omicron variant on global demand as well as a weaker Brazilian real, combined with lower ethanol prices, FAO analysts said.
For the whole year, the Sugar Price Index increased by 29.8%, reaching the highest level since 2016.
Meat and milk
The meat price index was “broadly stable” in December, but has risen 12.7% for the full year.
Milk was the only commodity where prices rose in the last month of the year, up 1.8 percent in November, mainly due to lower milk production in Western Europe and Oceania.
Cheese prices fell slightly last month, but for the year as a whole, the Milk Price Index is on average 16.9% higher than in 2020.