World food prices soared by 28% in 2021 to the highest level in a decade and hopes for a return to more stable market conditions this year are slim, the UN Food and Agriculture Organization said yesterday
The food price index of the Food and Agriculture Organization, which tracks the prices of the most traded goods and food in the world, averaged 125.7 points in 2021, the highest index since 2011 when it reached 131.9.
The Food Agency warns that the high costs endanger the poorer populations in countries that rely on imports. In addition, high food prices have contributed to a rise in inflation worldwide and all this while economies are still struggling to recover from the corona crisis. For example, in November the US consumer price index completed an annual increase of 8.6% and in the UK reached 1.5% per year. In December prices fell but on an annual basis, all categories in the index showed sharp increases and the oil price index peaked.
The UN Food and Agriculture Organization points to the prices of cereals and wheat in particular that have increased due to limited crops in major exporting countries, including Canada, Russia and the United States. The rise in fertilizer prices, At present, it is not clear what will happen next year.
“Although high prices are expected to lead to increased production, the persistent global epidemic and uncertain climatic conditions leave little room for optimism about a return to more stable market conditions even in 2022,” said Abdulraza Abassian, a senior economist at the FAO. Slightly in December, but climbed in the previous four months in a row, reflecting a shortage of crops alongside high demand over the past year.