World food prices are on the rise for the first time since 2011, according to the Food Price Index of the UN Food and Agriculture Organization. The FAO index rose by 8.2 percent during 2017, despite record cereal grain production worldwide, to reach its highest annual level since 2014.
All the same, the 2017 index reading of 174.6 points was still 24 percent below the peak of 229.9 points registered in 2011. “While sugar values plummeted in 2017, dairy and meat prices registered sharp year-on-year increases, and those of cereals and oils rose, too, albeit more modestly,” said the FAO. The index gauges the international prices of five commodity groups — sugar, dairy, meat, vegetable oils, and grains — that are common elements of diets worldwide. The dairy index zoomed by 31.5 percent and meat by 9 percent during 2017.
An FAO economist told Reuters that strong global demand was likely to support food prices in 2018. Economic growth is fueling food demand in many countries, said the economist. The outlook could change if oil prices rise or if bad weather interferes with crop production.