The UN food agency’s price index hit a record high in 2022, driven by the disruption produced by Russia’s invasion of Ukraine and the resulting fears of food shortages.
The Food and Agriculture Organization’s (FAO) food price index, which analyzes international prices of the main internationally-traded food commodities, averaged 143.7 points in 2022, an increase of 14.3% from 2021 and the highest level since records began in 1990, the agency announced on Friday.
As the global economy recovered from the effects of the epidemic, the index had already gained 28% in 2021 over the previous year.
After Russia’s invasion of Ukraine in February of last year, expectations of delays to Black Sea trade drove up food prices. Since then, they have relinquished a portion of their gains due in part to a U.N.-supported grain export channel from Ukraine and the possibility of improving supplies in producing nations.
In December, the benchmark index decreased for the ninth consecutive month, falling to 132.4 points from a revised 135.00 points in November. Previously, the November figure was reported as 135.7 points.
The FAO’s chief economist, Maximo Torero, stated that more stable food commodity prices are welcome following two years of volatility.
The FAO reported that the reduction in the index in December was caused by a drop in the international price of vegetable oils, as well as some declines in cereal and meat prices, which were partially offset by minor increases in the prices of sugar and dairy.
Four of the FAO’s five food sub-indices – cereals, meat, dairy, and vegetable oils – achieved all-time highs in 2022, while the fifth, sugar, reached a 10-year high.