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Global food prices rise at fastest pace in decade in May

FAO Food Price Index up 4.8% on monthly basis driven by rise in prices of oils, sugar, cereals, meat, dairy

NEWS IN ENGLISH 03.06.2021, 17:33 Pelin Su Tamer
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Global food prices rise at fastest pace in decade in May
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World food prices increased at the fastest pace in more than a decade this May, up 4.8% from a month ago, the UN’s Food and Agriculture Organization (FAO) said on Thursday.

The FAO Food Price Index averaged 127.1 points in May, its highest value since September 2011.

The sharp rise was driven by a surge in prices for oils, sugar, and cereals, along with firmer meat and dairy prices.

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

The vegetable oil price index jumped 7.8% from April, marking a 12th consecutive monthly rise.

“The continued strength of the index mainly reflects rising palm, soy and rapeseed oil values,” it said.

The sugar price index surged 4.0% to hit the highest level since March 2017, largely due to harvest delays and concerns over reduced crop yields in Brazil, the world’s largest sugar exporter.

The cereal price index went up 6.0% on a monthly basis with higher international maize prices in May.

The meat price index saw its eighth monthly increase, rising 2.2% to take the index 10% above its level a year ago.

The dairy price index rose 1.8% from April, averaging 28% above its level a year ago.

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