World Food Price Index hits new all-time high

TradingEconomics/Staff/3-14-2022

“The FAO Food Price Index averaged 140.7 points in February 2022, a new all-time high, up 3.9% from January and as much as 20.7% above its level a year ago. The rise was led by large increases in vegetable oil and dairy price sub-indices. Cereals and meat prices were also up, while the sugar price sub-index fell for the third consecutive month. “Concerns over crop conditions and adequate export availabilities explain only a part of the current global food price increases. A much bigger push for food price inflation comes from outside food production, particularly the energy, fertilizer and feed sectors,” said FAO economist Upali Aratchilage. “All these factors tend to squeeze profit margins of food producers, discouraging them from investing and expanding production.” As the Food Price Index measures average prices over the month, the February reading only partly incorporates market effects stemming from the conflict in Ukraine.”

USAGOLD note: In short, the Russo-Ukraine war only partially accounts for rising food prices. The rest, we assume, is the result of the massive money printing operations just about everywhere to counter the negative economic effects of the pandemic. When food prices rise disproportionately, we will add, the possibility of social unrest rises with it.

World Food Price Inflation

Source: tradingeconomics.com