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The
Food and Agriculture Organization's (FAO) food price index,
which tracks the most globally traded food commodities, averaged
125.7 points in 2021, the highest since 131.9 in 2011.
The monthly index eased slightly in December but had climbed for
the previous four months in a row, reflecting harvest setbacks
and strong demand over the past year. [GRA/]
Higher food prices have contributed to a broader surge in
inflation as economies recover from the coronavirus crisis and
the FAO has warned that the higher costs are putting poorer
populations at risk in countries reliant on imports.
In its latest update, the food agency was cautious about whether
price pressures might abate this year.
"While normally high prices are expected to give way to
increased production, the high cost of inputs, ongoing global
pandemic and ever more uncertain climatic conditions leave
little room for optimism about a return to more stable market
conditions even in 2022," FAO senior economist Abdolreza
Abbassian said in a statement.
A surge in the price of fertilisers, linked in turn to
spiralling energy prices, has ramped up the cost of so-called
inputs used by farmers to produce crops, raising doubts over
yield prospects for next year's harvests.
In December, prices for all categories in the food price index
bar dairy products fell, with vegetable oils and sugar falling
significantly, the agency said in its monthly update.
It cited a lull in demand during the month, concerns about the
impact of the Omicron coronavirus variant, and supplies from
southern hemisphere wheat harvests for the declines.
However, all categories in the index showed sharp increases
during 2021 as a whole and the FAO's vegetable oil price index
hit a record high.
Crop futures have seen volatile trading at the start of 2022,
with oilseed markets stirred by drought in South America and
floods in Malaysia. [POI/]
Dairy prices maintained their recent strength in December,
helped by lower milk production in Western Europe and Oceania,
the FAO said.
(Reporting by Gus Trompiz; Editing by David Clarke)
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