Food Prices Up 20% Over the Past Year
If your grocery bills continue to frustrate you, you’re not alone. The Food and Agriculture Organization of the United Nations (FAO) released its report on worldwide food prices for February, and prices hit a record high last month. The February FAO Food Price Index (FFPI) reached a new high of 140.7 points, which reflects an increase of 3.9% over January and a whopping 20.7% over this time last year.
The FFPI serves as a “measure of the monthly change in international prices of a basket of food commodities,” notes the FAO. This month’s increase was largely due to “large increases in vegetable oil and dairy price sub-indices.” Cereal and meat prices are up as well, though not as high, while sugar prices are down.
“A much bigger push for food price inflation comes from outside food production, particularly the energy, fertilizer and feed sectors,” said FAO economist Upali Galketi Aratchilage. “All these factors tend to squeeze profit margins of food producers, discouraging them from investing and expanding production.”
The February FFPI dates to before Russia’s invasion of Ukraine, but there are legitimate concerns that the war in Ukraine will add to food price woes, as it has taken place at the outset of spring planting season. – READ MORE
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