Global food prices spiked in February, the first time in five months on the back of rising vegetable oil demand and logistical disruptions within the Russian Federation and the wider Black Sea region, affecting cereal prices.
This is according to a new report by the Food and Agriculture Organisation (FAO) released on Friday. The Food Price Index tracks monthly changes in the international prices of a set of globally traded food commodities.
In the review period, food prices averaged 125.3 points, up 0.9 percent from its revised January level, while still one percent below its level a year earlier.
Vegetable oil prices posted the biggest gain during the review period, climbing 3.3 percent to their highest level since June 2022.
The increase was largely attributed to higher international palm oil prices, supported by strong global demand and seasonally lower production in Southeast Asia. At the same time, global soyoil prices rose on expectations of supportive biofuel policies in the United States.
Cereal prices also edged higher, with the benchmark index rising 1.1 percent from January. The increase was mainly driven by higher world wheat prices amid reports of frost in parts of Europe and the United States, as well as continued logistical disruptions in the Russian Federation and the broader Black Sea region.
“International coarse grain prices recorded a modest increase, while the FAO rice index rose by 0.4 percent from the previous month, supported by steady demand for basmati and Japonica varieties,” the report said.
The Food and Agriculture Organization (FAO) also reported that meat prices increased by about 0.8 percent from January, as ovine meat prices reached a record high and bovine meat prices rose due to strong import demand from China and the United States.
Meanwhile, global dairy prices declined by 1.2 percent, largely driven by lower cheese prices.
“International prices for skim and whole milk powders rose significantly amid strengthening import demand from North Africa,” the FAO said.
Sugar prices also dropped sharply by 4.1 percent, reflecting expectations of ample global supplies during the current season.