Fears aboutinflation materialize: i food prices global have extended theirs rally worldwide in 10 years at the most.
This was reported by the UN agency that deals with food resources, the FAO. Concerns about the spending power of populations are therefore growing as global economies struggle to emerge from the pandemic crisis.
Furthermore, food costs higher push inflation, complicating the efforts of central banks in maintaining the accommodating and supportive policy that states still invoke.
What alarming data has emerged from the UN on world food prices?
Food prices at 10-year highs: the data
I world food prices rose in May at the fastest monthly rate in over a decade, recording a 12th consecutive monthly increase to reach the level highest since September 2011.
FAO, a UN agency, released the data: the food price index, which measures monthly changes in a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 127.1 points in May compared to 121.3 revised in April.
On an annual basis, prices have increased by 39,7% last month, with a 4.8% monthly rise which was the largest in more than 10 years.
The cereal index grew by 6.0% in May on a monthly basis and by 36.6% on an annual basis. THE corn prices drove the surge and are now higher than the89,9% compared to the previous year’s value.
All food prices recorded evident increases in May: vegetable oil + 7.8%; sugar + 6.8%; meats + 2.2%; dairy products increased by 1.8%.
A mix of increased global import demand and manufacturing difficulties triggered the food price rally.
Why is there a food price alarm?
What is happening to world food prices and what to expect?
Drought in the main growing regions of the Brazil is crippling crops, from corn to coffee, and growth in vegetable oil production has slowed in Southeast Asian. This is driving up costs for livestock farmers and risks putting a strain on global grain stocks that have been depleted by the surge in Chinese question.
But commodity rallies are hitting store shelves, with countries from Kenya to Mexico reporting higher food costs.
The damage could be particularly pronounced in some of the poorer nations dependent on imports, with limited purchasing power and fragile social safety nets as they grapple with the pandemic.
The wave of high costs has also awakened memories of 2008 and 2011, when price spikes led to riots for food in more than 30 countries.
The problems of poverty and hunger in the world have already reached the worst level in years with the pandemic. Food inequalities are at risk of exploding, also exacerbated by extreme weather conditions and political conflicts.
For this, the UN has raised an alarm on food prices and related inflation.