Global food prices will increase by more than 14 percent in 2022 compared to 2021, according to the UN food agency Food and Agriculture Organization (FAO). The disruptions caused by Russia’s invasion of Ukraine were also a major factor in the rise in food prices. In addition, factors including major market disruptions, high energy and input costs, inclement weather and strong global food demand have also contributed to higher global food prices.
The Food and Agriculture Organization’s Food Price Index tracks the international prices of the most traded food products globally. The overall food price index in 2022 averaged 143.7 points. This pushed the UN Food Agency’s average price index to the highest level on record. The index had gained 28 percent in 2021 over the previous year as the world economy continued to recover from the impact of Covid.
But in December 2022, monthly food prices decreased. With this, global food prices recorded a monthly decline for the ninth consecutive month. Food price index averaged 132.4 points in December compared to 135.00 points in November 2022.
Decline in the index was attributed to a sharp fall in the international prices of vegetable oils. And some fall in prices of grains and meat also contributed to this. The Food and Agriculture Organization has previously said that food import costs will force poor countries to cut their exports in 2022.