Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Food prices jump 20.7% yr/yr to hit record high in Feb, U.N. agency says

Economic Indicators Mar 05, 2022 06:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Customers walk past a fruit stall at a street market, in Mexico City, Mexico December 17, 2021. REUTERS/Luis Cortes/File Photo

(This March 4 story corrects to replace year-on-year pct change in headline and first paragraph to 20.7% from 24.1% after FAO issued an official correction)

ROME (Reuters) - World food prices hit a record high in February, led by a surge in vegetable oils and dairy products, to post a 20.7% increase year-on-year, the U.N. food agency said on Friday.

The Food and Agriculture Organization's (FAO) food price index https://www.fao.org/worldfoodsituation/foodpricesindex/en, which tracks the most globally traded food commodities, averaged 140.7 points last month against a downwardly revised 135.4 in January. That figure was previously given as 135.7.

Higher food prices have contributed to a broader surge in inflation as economies recover from the coronavirus crisis and the FAO has warned https://reut.rs/3JXHPq7 that the higher costs are putting poorer populations at risk in countries reliant on imports.

FAO economist Upali Galketi Aratchilage said concerns over crop conditions and export availabilities provided only a partial explanation to the increase in global food prices.

"A much bigger push for food price inflation comes from outside food production, particularly the energy, fertilizer and feed sectors," he said. "All these factors tend to squeeze profit margins of food producers, discouraging them from investing and expanding production."

Data for the February report was mostly compiled before the Russian invasion of Ukraine. Concerns over tensions in the Black Sea area were already weighing on agricultural markets even before the violence flared, but analysts warn a prolonged conflict could have a major impact on grain exports.

FAO said its vegetable oils index rose 8.5% month-on-month in February to chalk up another record high, propelled by rising palm, soy, and sunflower oil prices. Ukraine and Russia account for about 80% of global exports of sunflower oil.

The cereal price index rose 3.0% on the month, with maize prices up 5.1% and wheat prices increasing 2.1%, largely reflecting uncertainty about global supply flows from Black Sea ports. [GRA/]

FAO's dairy price index increased 6.4%, its sixth consecutive monthly rise, underpinned by tight global supplies, while meat prices rose 1.1% in February.

By contrast, sugar was the sole index to post a decrease, shedding 1.9% from the previous month due partly to favourable production prospects in major exporters India and Thailand.

FAO also issued its first projections for cereal output in 2022, seeing global wheat production rising to 790 million tonnes from 775.4 million in 2021, thanks in part to hopes of high yields and extensive planting in Canada, the United States and Asia.

The U.N. agency cautioned however that its projections did not take into account the possible impact of the conflict between Russia and Ukraine.

FAO said maize outputs in Argentina and Brazil in 2022 were forecast at well above-average levels, notably in Brazil where the maize crop was seen reaching a record high 112 million tonnes.

World cereal utilization in 2021/22 was forecast to rise 1.5% above the 2020/21 level, hitting 2.802 billion tonnes. FAO's forecast for world cereal stocks by the close of seasons in 2022 stood at 836 million tonnes.

Food prices jump 20.7% yr/yr to hit record high in Feb, U.N. agency says
 

Related Articles

Taiwan July exports jump, but uncertainty ahead
Taiwan July exports jump, but uncertainty ahead By Reuters - Aug 08, 2022 1

(Corrects typo in headline) TAIPEI (Reuters) -Taiwan's exports rose in July on sustained demand for technology products with shipments to China picking up, and while the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Shep De
Shep De Mar 06, 2022 11:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
My opinion, but raw food prices about to get so expensive, you mention dairy & vegetable oils but meats already skyrocketed & bread are going crazy too. That touches on the food groups pretty much, actual vegetables are going to rise too, already are; this tells me food delivery more as restaurants get bulk pricing so they can compete w/ mom spending on inflationary groceries so Doordash and Uber will flourish , so will oil go up because of this mass gas usage
Bhagwan Dass
Bhagwan Dass Mar 05, 2022 6:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when Trump was president their was no inflation but price war was in world
gab nea
gab nea Mar 05, 2022 6:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this guy caused the inflation that he is fighting now. so, why did he QE in March 20' flash crash? who made him do it? who benefited? who hired this guy? oh I forgot the 3 times loser was president, explained.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email