World food prices hit record in 2022, says UN agency

A rise in the cost of most food commodities last year, when the disruption caused by Russia’s invasion of Ukraine raised shortage concerns, sent the average price index calculated by the UN food agency to an all-time high.

The Food and Agriculture Organization (FAO) food price index, which tracks the international prices of the most globally traded food commodities, reached an average of 143.7 points in 2022, up 14.3% compared to 2021, and the highest level since records began in 1990, the agency said on Friday (6).

The index had already risen 28% in 2021 compared to the previous year, as the world economy recovered from the impact of the pandemic.

Food prices soared after Russia’s invasion of Ukraine in February last year, on fears of disruptions to Black Sea trade.

There has been some relief since then, partly due to the opening of a UN-supported grain export channel from Ukraine and the prospect of better supplies in producing countries.

In December, the benchmark index fell for the ninth straight month to 132.4 points from 135.00 points (revised) in November. November’s number was previously calculated at 135.7 points.

“The calmer food commodity prices are welcome after two very volatile years,” said FAO Chief Economist Maximo Torero.

The index’s fall in December was driven by a decline in the international price of vegetable oils, along with some declines in cereal and meat prices, but mitigated by slight increases in sugar and dairy prices, the FAO said.

Yet throughout 2022, four of the FAO’s five food sub-indices — cereals, meat, dairy and vegetable oils — reached record highs, while the fifth, sugar, hit a 10-year high.

The FAO Grain Price Index rose 17.9% in 2022 due to factors including significant market disruptions, higher energy and input costs, adverse weather and strong global demand for food, FAO said.