Bloomberg writer Megan Durisin reported Thursday that “Global food prices have fallen from nearly an all-time high at the end of last year, delivering a little respite to consumers and governments facing a wave of inflationary pressures.
âA United Nations index that tracks everything from grains to meat fell 0.9% in December, potentially helping to dampen the rise in grocery prices.
Still, the gauge remains close to the all-time high of 2011 and average prices jumped about 28% in 2021, the highest in 14 years.
The Bloomberg article noted that, âFood prices are unlikely to stabilize for some time, according to Abdolreza Abbassian, Senior Economist at the Food and Agriculture Organization of the United Nations.
“‘Nothing has fundamentally changed over the last two or three months to give us some degree of optimism that the food market is going to relocate at more stable or even lower prices, âhe said. “All the uncertainties are there, they have not disappeared, which means that Everything is still possible. ‘â
Durisin added that âthe recent energy crisis has also pushed up the prices of fertilizers, threatening to further increase food production costs. There are already signs that farmers are reduce on nutrient purchases or switching from cereals to less fertilizer intensive crops.
And Reuters News reported on Thursday that âGlobal food prices jumped 28% in 2021 to reach their highest level in a decade and hopes for a return to more stable market conditions this year are slender, the UN food agency said on Thursday.
âThe Food and Agriculture Organization of the United Nations (FAO) food price index, which tracks the most traded food products in the world, is on average 125.7 points in 2021, the highest since 131.9 in 2011. “
The Reuters article explained that “a surge in fertilizer prices, in turn linked to soaring energy prices, has pushed up the cost of so-called inputs used by farmers to produce crops, questioning the yield outlook for next year’s crops. “