Global food prices are rising at the fastest rate in more than a decade
Food and Agriculture Organization of the United Nations declares world food prices rose in May at their fastest monthly rate in more than a decade.
The FAO food price index, averaging 127.1 points in May, was 4.8% higher than in April and almost 40% higher than in May 2020.
The index reached its highest value since September 2011 and is currently only 7.6% below its highest recorded value, in nominal terms. Spikes in international prices for vegetable oils, sugar and grains helped push the index up, FAO noted.
The FAO cereal price index increased by 6%, the vegetable oil price index by 7.8% and the sugar price index by 6.8%. The price indexes for meat and dairy products increased by 2.2% and 1.8% respectively.
The FAO has indicated that global cereal use for 2021-22 is expected to increase by 1.7%. He predicts that global grain consumption will increase in line with global population growth, coupled with an increase in the use of wheat for animal feed.
By the end of the 2021-22 crop year, global cereal stocks are expected to increase by 0.3%. This increase would put an end to a consecutive decline in grain stocks for three years.
FAO Food Price Index tracks monthly changes in the international price of a basket of commonly traded food products.
For more information, visit Agri-Pulse.com.