Costly meals: World food index ends year where it began after dramatic run

During the year, the index hit the highest since records started in 1990

After a year marred by disruptions from the war in Ukraine and extreme weather, global food prices ended 2022 roughly where they started. A United Nations’ index of food-commodity costs soared to a record in March, shortly after Russia’s invasion of Ukraine crippled vital flows of grain and vegetable oils from the breadbasket nation. Prices then slid as a Black Sea crop-export deal and good harvests in other growers buffered supplies, before steadying toward year-end.

The Food and Agriculture Organization’s (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 143.7 points in 2022, up 14.3 per cent from 2021, and the highest since records started in 1990, the agency said on Friday. The index had already gained 28  per cent in 2021 from the previous year as the world economy recovered from the impact of the pandemic.

The gauge , which tracks five major staples, fell 1.9 per cent in December, the FAO said in a report.

In December the benchmark index fell for the ninth consecutive month to 132.4 points, compared to 135 points for November.

“Calmer food commodity prices are welcome after two very volatile years,” FAO Chief Economist Maximo Torero said.

The decline was driven by a drop in the price of vegetable oils, cereal and meat prices, but mitigated by slight increases in those of sugar and dairy. Over 2022, four of the FAO’s five food sub-indexes - cereals, meat, dairy and vegetable oils - had reached record highs, while the fifth one, sugar, was at a 10-year high.

The cereal price index rose 17.9 per cent in 2022 due to market disruptions, higher energy and input costs, adverse weather and continued strong global food demand, the FAO said.