World food prices continue to rise amid supply constraints, high demand: UN

World food prices continue to rise amid supply constraints, high demand: UN

World food prices have continued to rise on the back of supply constraints and surging demand, according to the United Nations.

Prices in January rose 1.1 percent compared to December and 19.5 percent over the same period in 2021, according the latest index published by the Food and Agriculture Organisation of the United Nations (FAO) on Thursday.

The increase has been driven by a significant jump in vegetable oil and dairy prices. The FAO Food Price Index is a measure of the monthly change in international prices of food commodities, including meat, sugar, oils and cereals.

The rising prices of food, as well as living costs, has been a major concern for consumers worldwide. Rising costs are adding a strain on households that are already battling with the ongoing COVID-19 pandemic.

“The real average price of food has actually been increasing since the year 2000, reversing the previous trend of a steady decline from the start of the 1960s,” according to a World Economic Forum report in October 2021.

Price index

According to the United Nations, the increase in the prices of major vegetable oils has been supported by rising crude prices, as well as robust import purchases, supply tightness and surging global import demand.

“Reduced export