Global food prices soared in January – FAO

Global food prices rose notably in January, led by sugar and cereals, even as markets remain well supplied, the Food and Agriculture Organisation (FAO) monthly figures has shown.

FAO’s January Food Price Index, which measured the monthly change in international prices for five major food commodity groups: major cereals, vegetable oils, dairy, meat, and sugar, averaged 173.8 per cent in January.

The UN food agency said the January food price index report was its highest value in almost two years, marking a 2.1 per cent increase from its revised December value and 16.4 per cent above the year-earlier level.

While 2016 marked the fifth consecutive year the global food price index report has fallen, January marked its sixth monthly increase in a row, it said.

“Sugar prices surged 9.9 per cent in the month, driven by expectations of protracted supply tightness in Brazil, India and Thailand.

“Cereal prices rose 3.4 per cent from December to a six-month high, with wheat, maize and rice values all increasing.

“International prices of rice also rose, in part due to India’s ongoing state procurement programme, reducing the quantities available for export.

“Vegetable oil prices rose 1.8 per cent, due mostly to low global inventory levels of palm oil coupled with a slow production recovery in Southeast Asia,” the FAO’s report showed.