Even with a slight decline in December, international food prices ended 28 percent more Compared with the Food Price Index of the United Nations Food and Agriculture Organization (FAO) at the end of 2020, an average of 125.7 points are largely attributed to grain behavior. 44% increase in maize You 31 percent wheat, In addition to increase in prices of vegetable oils, sugar, meat and dairy products.
“While higher prices generally increase production, higher input costs, the current global pandemic and growing climate uncertainty leave little room for optimism about the recovery of even more stable trading conditions in 2022,” Abdolreza Abbasian, Said senior economist at FAO.
The last time the index reached such a high it was in 2011, When it recorded an average of 131.9 points, underscoring the extraordinary inflationary pressures faced by the global economy and the finances of households around the world.
The annual jump in the index summarizes the trend that was observed for the same throughout 2021. It started the year and continued to rise until the second quarter, when it entered a period of decline. This was followed by a rebound that continued till the end of the year. It should be noted that global food prices have been increasing since May 2020.
World food prices declined slightly in December, as international prices for vegetable oils and sugar declined significantly from their previously high levels. The FAO Food Price Index averaged 133.7 points in December, down 0.9 percent from November, but still 23.1 percent higher than December 2020.
Looking at 2021 as a whole, computing the full year average, the FAO Food Price Index averaged 125.7 points, an increase of 28.1 percent over the previous year.
FAO grain price index reaches its highest annual level since 2012 and an average of 27.2 percent higher than in 2020, with corn increasing by 44.1 percent and wheat by 31.3 percent, but decreasing by 4.0 percent in the case of Al resulting in lower wheat prices for exports. An increase in post-harvest supplies in the Southern Hemisphere, which offset the rise in corn prices, decreased the FAO’s grain price index by 0.6 percent between November and December.
The FAO vegetable oil price index rose to an all-time high, rising 65.8 percent since 2020, even though it fell 3.3 percent in December with weaker palm and sunflower oil prices. As a result of weak global demand for imports, which may be linked to concerns about the effects of a rise in the number of cases of the coronavirus disease (COVID-19), the agency said in its statement.
Possible effects of variants COVID-19 Omicron In world demand, weakening Brazilian reals and a fall in ethanol prices weakened sugar prices over the past few months; However, in 2021 as a whole, the FAO Sugar Price Index rose 29.8 percent over the previous year and reached its highest level since 2016.
As for the Meat Price Index, its value was 12.7 percent higher than in 2020 and the FAO Dairy Price Index was on average 16.9 percent higher than in 2020.
With information from Caesar Kanto