World food prices soared by 28 percent during 2021, according to an index based on five major commodities, including cereal grains, meat, and sugar, said the UN Food and Agriculture Organization on Thursday. The abrupt increase, as the world recovered from the economic collapse that accompanied the pandemic, ended five years of relative stability in the Food Price Index.
Pushed by high meat prices, the Food Price Index will surge by 3.5 percent this year, its largest increase since the 5.5 percent rise in 2008, said the USDA on Tuesday. Food prices typically rise about 2.4 percent a year.
Americans will see the second year in a row of larger-than-usual food price increases, with food inflation now forecast at 3.5 percent this year, following the pandemic-driven 3.4 percent increase of 2020, said USDA economists on Thursday.
Sharply lower prices for vegetable oils, down nearly 10 percent in a month, contributed to the first decline in the Food Price Index since last May, said the UN Food and Agriculture Organization on Thursday. The index fell by 2.5 percent in June, although it was still about one-third higher than a year ago.
After increasing for 12 months in a row during the pandemic, international food prices are the highest they've been since September 2011, said the monthly Food Price Index, released on Thursday. The index surged 4.8 percent in May, its largest monthly increase in nearly 11 years.
Global food prices are the highest they've been since June 2014, according to a monthly index compiled by the UN Food and Agriculture Organization. The Food Price Index rose by 2.1 percent, its 10th increase in a row, said the FAO on Thursday.
World wheat production will rise for the third year in a row, with growers harvesting a record-large crop this year, say forecasts from the UN Food and Agriculture Organization and the International Grains Council. While they differ slightly on how large the new crop, months away from harvest, will be, they agree Europe will be key.
Americans will eat more chicken, already their favorite meat, as stay-at-home orders have consumers shopping at the supermarket rather than going to restaurants, said ag lender CoBank on Thursday in assessing the impact of the coronavirus pandemic on food producers and processors. (No paywall)
Led by “much weaker” vegetable oil, dairy, and grain prices, the UN Food and Agriculture Organization’s index of global food prices fell to its lowest level since May 2016. The price of vegetable oil dropped to a 12-year low.
Sharp declines in the dairy and sugar prices, dropping by 6 percent or more in a month, pulled down the monthly Food Price Index to its lowest level this year, said the UN Food and Agriculture Organization. The index, which measures international prices for a basket of commodities, had been rising steadily until June.