The Russian invasion of Ukraine drove food prices to record levels during 2022 and the Food Price Index remains elevated after a nine-month decline, said the UN Food and Agriculture Organization. The index stood at 132.4 at the end of the year, 1-percent lower than the previous December, with vegetable oil prices down 6.7 percent in a month.
“Calmer food commodity prices are welcome after two very volatile years,” said Maximo Torero, FAO chief economist. “It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs, and with prices of rice increasing, and still many risks associated with future supplies.”
The Food Price Index, which tracks the international prices of five groups of food commodities, had an average reading of 143.7 points for 2022, compared to the 2021 average of 125.7 points and the 2020 average of 98.1 points. The increases of 2021 and 2022 “catalyzed significant strains and food security concerns for lower-income food-importing countries,” said the FAO. “World prices of wheat and maize reached record highs over the year.”