Global: Food prices highest in 10 years, what are the reasons for this

Published 2021년 6월 8일

Tridge summary

In May, the FAO Food Price Index experienced its fastest monthly increase in over a decade, reaching its highest level since September 2011, with a 4.8% increase from April and a 39.7% increase from the previous year. This surge is attributed to record high prices in vegetable oil, sugar, and grain, despite an expected record in world cereal production. The rise in cereal prices, particularly maize, and the increase in vegetable oil, sugar, and meat prices, including a decrease in butter prices, are highlighted in the report. The surge in prices is largely due to slow production, increased demand, and concerns about yields in key producing countries.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to the Food and Agriculture Organization of the United Nations (FAO), world food prices rose in May at the fastest monthly pace in more than a decade, even though world cereal production is on track to reach a new record. The FAO Food Price Index averaged 127.1 points in May, 4.8% more than in April and 39.7% more than in May 2020. The sharp rise in international vegetable oil, sugar and grain prices has pushed the index up to its highest since September 2011 and only 7.6% below the record high in nominal terms. The cereal price index has risen 6.0% since April, led by international maize prices above the previous year's figure by an average of 89.9%. However, corn prices began to decline in late May, largely due to improved US production prospects. International wheat prices also showed a decline towards the end of the month, but in May were on average 6.8% higher than in April, while international rice prices remained stable. The FAO vegetable oil price index rose 7.8% ...

Source: Wrp