World food prices at 10-year high

World food prices eased in December after four consecutive monthly gains but jumped 28% over 2021 for the highest average level since 2011, the UN food agency said yesterday.

The Food and Agriculture Organization’s food price index, which tracks international prices of the most globally traded food commodities, averaged 133.7 points last month compared with a revised 134.9 for November.

The November figure was previously given as 134.4.

For 2021 as a whole, the benchmark index averaged 125.7 points, up 28.1% from 2020 and the highest since 131.9 in 2011.

The monthly index has been running at 10-year highs, reflecting harvest setbacks and strong demand over the past year.

With the exception of dairy products, prices for all categories in the food price index eased in December, with vegetable oils and sugar falling significantly, the agency said.

However, all categories in the index showed sharp increases during 2021 as a whole and the FAO’s vegetable oil price index hit a record high.

Crop futures have seen volatile trading at the start of 2022.

Higher food prices have also contributed to a broader surge in inflation as economic activity recovers from the coronavirus crisis.

The FAO has warned that higher food costs in import-reliant countries are putting poorer populations at risk.