World food prices witnessed growth in their fastest monthly rate for the first time in more than a decade. The Food and Agricultural Organization stated that this is the 12th consecutive monthly increase to reach its level since September 2011.
The FAO also made its first forecast about the world cereal production in 2021. It predicted that the output is nearly 2.821 billion tonnes, which is a new record and is 1.9 per cent more than the 2020 levels.
The FAO’s food price index averaged 127.1 points last month, while it measured 121.3 points in April. This index measures monthly changes for cereals, oil seeds, dairy products, meat, sugar, and so on.
A year-on-year analysis states that the prices reached up to 39.7 per cent in May. FAO’s cereal price index witnessed a 6.0 per cent rise in May month-on-month and 36.6 per cent year-on-year. Maize prices were at the top of the surge and have now reached 89.9 per cent above their year-earlier value.
The vegetable oil price index also witnessed a jump in May with 7.8 per cent primarily because of the rising palm, soy, and rapeseed oil quotations. There was a rise in palm oil prices since there was slow production growth in Southeast Asia.
The FAO further stated that there was a 6.8 month-on-month gain in the sugar index, while the meat index rose 2.2 per cent from April.