Food prices rise in Jan., led by vegetable oils, U.N. agency says

Clients stroll previous a fruit stall at a road market, in Mexico Metropolis, Mexico December 17, 2021. REUTERS/Luis Cortes/File Picture

ROME, Feb 3 (Reuters) – World meals costs rebounded in January and remained close to 10-year highs, led by a bounce within the vegetable oils index, the U.N. meals company mentioned on Thursday.

The Meals and Agriculture Group’s (FAO) food price index, which tracks essentially the most globally traded meals commodities, averaged 135.7 factors final month towards an upwardly revised 134.1 in December. That determine was beforehand given as 133.7.

Increased meals costs have contributed to a broader surge in inflation as economies get better from the coronavirus disaster and the FAO has warned that the upper prices are placing poorer populations in danger in international locations reliant on imports.

Rome-based FAO additionally raised its projection of world cereal manufacturing in 2021 to 2.793 billion tonnes from a earlier estimate of two.791 billion tonnes, in response to its cereal supply and demand outlook.

FAO mentioned its vegetable oils index rose 4.2% month-on-month in January to achieve file ranges, shunted increased by lowered export availabilities and different supply-side constraints, particularly labour shortages and unfavourable climate.

“There’s a concern the impacts of those constraints is not going to ease rapidly,” Boubaker Ben-Belhassen, head of FAO’s Markets and Commerce Division, mentioned in an announcement.

The FAO dairy value index elevated 2.4%, its fifth consecutive month-to-month rise, with the steepest good points registered by skim milk powder and butter.

The cereal value index rose simply 0.1%, with maize posting a 3.8% acquire on the month, spurred by worries about persistent drought circumstances in South America, FAO mentioned.

In contrast, world wheat costs fell 3.1% on the again of huge harvests in Australia and Argentina.

Meat costs edged up in January, whereas sugar was the only real index to put up a lower, shedding 3.1% from the earlier month due partly to beneficial manufacturing prospects in main exporters India and Thailand, FAO mentioned.

FAO mentioned it raised its projection of world cereal manufacturing in 2021 due to larger-than-previously estimated wheat outputs in Argentina and Australia, together with barely increased manufacturing estimates in Russia and Ukraine.

“For 2022, world wheat plantings are anticipated to broaden, buoyed by principally conducive climate circumstances within the northern hemisphere, though excessive enter prices might deter a bigger enlargement,” FAO mentioned.

World cereal utilization in 2021/22 was forecast to rise 1.6% above the 2020/21 degree, hitting 2.805 billion tonnes. FAO’s forecast for world cereal shares by the shut of seasons in 2022 stood at 824 million tonnes, up 2.2 million tonnes since November and solely barely decrease than their opening ranges.

Modifying by Crispian Balmer

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