Global food prices surge 14.3% in 2022, FAO says

Global food prices rose by 14.3 percent in 2022, the United Nations Food and Agriculture Organization (FAO) announced Friday, with higher energy and fertilizer prices resulting from the ongoing conflict between Russia and Ukraine being the main drivers.

Report informs via foreign media that the FAO's sub-indexes showed cereal prices rose 17.9 percent from 2021, vegetable oil prices increased 13.9 percent, dairy prices climbed 19.6 percent, meat prices shot up 10.4 percent, and sugar prices rose 4.7 percent.

In December 2022, the FAO's Food Price Index fell 1.9 percent from the previous month, marking its ninth consecutive monthly decline. However, the index rose sharply in the first months of 2022, resulting in a year-end figure well above the 2021 average.

The decline in December was mainly due to markets adjusting to distribution disruptions, higher transport costs and lower demand stemming from slower global economic growth.

In December, grain and cereal prices, which make up the largest portion of the index, decreased by 1.9 percent from the previous month. Meat prices also decreased by 1.2 percent during the month, while vegetable oil prices fell by 6.7 percent. However, dairy prices increased by 1.1 percent, and sugar prices increased by 2.4 percent during the month.

The FAO has repeatedly warned that rising food prices threaten global food security, particularly in developing countries.

"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," FAO Chief Economist Maximo Torero said in a press release.

The Food Price Index is based on worldwide prices for 23 food commodity categories covering prices for 73 different products compared to a baseline year.

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