Global food prices are soaring again. Last month, the global food price index rose by 1.6% compared to the previous month. Prices for sugar and dairy products have increased significantly.
According to the Food and Agriculture Organization (FAO) on the 8th, the global food price index recorded 127.1 last month. This is an increase of 1.6% compared to the previous month's 125.1 (2014-2016 average = 100).
The global food price index showed a continuous upward trend from September to November last year. After that, it slightly decreased to 127.4 points in December and 125.1 in January, but rose again in February. The Food and Agriculture Organization conducts an international price trend survey for 24 items (95 items) and publishes monthly price indexes for five item groups (grains, oils, meats, dairy products, sugar).
Looking at the item groups, sugar and dairy products drove the rise in the food price index. Sugar's price index recorded 118.5, a 6.6% increase over the previous month, amid growing concerns about supply shortages.
The dairy price index recorded 148.7, a 4.0% increase from the previous month. It is analyzed that the decrease in cheese and milk production in Oceania had an impact. The price index for oils such as palm oil, canola oil, soybean oil, and sunflower oil rose by 2.0% to 156.0 compared to the previous month.
The grain price index also slightly increased by 0.7% to 112.6. Wheat was affected by supply shortages in Russia and adverse weather in some regions of Europe, Russia, and the United States. Corn prices were also impacted by supply shortages in Brazil and deteriorating crop conditions in Argentina. The meat price index remained the same at 118.0 as the previous month.