World food prices hit record level in January

By Gokhan Ergocun

ISTANBUL (AA) – Up 19.5% year-on-year, world food prices hit an all-time-high in January 2022, the UN's Food and Agriculture Organization (FAO) said on Thursday.

The FAO food price index (FFPI) was at 135.7 points last month, up 22.2 points from January 2021, while all sub-items saw significant increases.

"The FFPI's rebound in January was led by solid gains in vegetable oils and dairy sub-indices, partially offset by a decline in sugar prices for the second consecutive month," the organization said.

The FAO food price index is a trade-weighted index that tracks international market prices of five major food commodity groups.

- Vegetable oil price index surges to all-time high

The cereal price index rose 12.5% from the previous year to reach 140.6. Despite of easing wheat prices, strong demand continued to push cereal prices up in January.

The FAO vegetable oil price index reached an all-time high last month, increasing 47.6 percentage points to 185.9 from January 2021.

"The rise reflected higher quotations for palm, soy, rapeseed and sunflower seed oil," the FAO said.

The sugar price index rose 19.7% – lowest level for the last six months – year-on-year in January.

The FAO meat price index went up 17.3% in January on a yearly basis due to strong global import demand exceeding export supplies.

The dairy price index averaged 16.9% higher than in 2020. "The January increase was underpinned by a tightening in global markets," the FAO said.