Food prices across the world hit record highs in February, skyrocketing by 20.7% compared to a year ago, the United Nations’ Food and Agriculture Organization’s (FAO) said Friday.
The FAO’s food price index, which tracks the most globally traded food commodities, averaged 140.7 points in February, up from 135.4 points in January. The FAO called this “a new all-time high” and attributed it to “large increases” in the costs of dairy and vegetable oils. (RELATED: From Soup To Nuts: Here Are The Food Items That Will Cost More In 2022)
Global #foodprices rise to record high in February, led by vegetable oils & dairy products.
The @FAO Food Price Index averaged 140.7 points in Feb, up 3.9% from Jan, & 3.1 points higher than in Feb 2011.
World wheat & maize production seen rising in 2022https://t.co/PPgoW3NqMO
— FAO Newsroom (@FAOnews) March 4, 2022
Vegetable oils increased 8.5% from January to reach a new record high, mostly driven by increased quotations for palm, soy and sunflower oils.
The average price of dairy was 6.4% higher in February than January due to lower-than-expected milk supplies in Western Europe and Oceania and persistent import demand mainly from North Asia and the Middle East, according to the FAO.
Most of the data was compiled before Russia invaded Ukraine, according to the FAO. This could increase costs even more since Russia and Ukraine account for about 76% of the world’s exports of sunflower oil, according to the U.S. Foreign Agricultural Service (FAS).
“A much bigger push for food price inflation comes from outside food production, particularly the energy, fertilizer and feed sectors,” FAO economist Upali Galketi Aratchilage said. “All these factors tend to squeeze profit margins of food producers, discouraging them from investing and expanding production.”