Rome, (Asian independent) World food prices continued their gains from last year in January, rising 4.3 per cent for the most, pushed higher for the eighth consecutive month by rising prices for grains and cereals, sugar, and vegetable oils, the UN Food and Agriculture Organization (FAO) said in a report.
In the report issued on Thursday, the FAO said the overall index in January was at its highest level since July 2014, reports Xinhua news agency.
Grains and cereals, the largest component in the index, saw prices rise 7.1 per cent since December 2020, the seventh straight month it rose.
Corn prices were the biggest factor in the monthly increase, surging 11.2 per cent — 42.3 per cent above their level from one year ago.
The FAO said the biggest factors in corn prices were lower-than-expected production in the US, production worries from South America, and increased demand from China.
Wheat prices also rose due to speculation of lower exports from Russia, while high demand in Asia and Africa pushed rice prices higher.
The Organization said sugar prices rose 8.1 per cent from December 2020, with production seen as falling in the European Union (EU), while vegetable oil prices were 5.8-per cent higher due in part to lower palm oil production in Indonesia and Malaysia.
Dairy and meat prices also rose, though more modestly.
Dairy prices were 1.6 per cent higher in January, pushed by increased seasonal demand from China ahead of the country’s New Year holiday festivities.
The same factor resulted in higher meat prices, which rose by 1.0 per cent after higher production levels from Oceania helped compensate for the higher demand.
The monthly FAO Food Price Index is based on worldwide prices for 23 food commodity categories covering prices for 73 different products compared to a baseline year.
The next index is scheduled for release on March 4.
