Global Food Inflation At Record High, Says FAO: 12.6% Monthly, 34% Yearly Rise!

by Arjun Banerjee 1 month ago Views 1233

FAO Global Food Inflation Russia Ukraine War March
The Food and Agriculture Organization under the United Nations said on Friday that food inflation across the world is at a record high amid the ongoing conflict between Russia and Ukraine. The FAO stated that the food price index rose to 159.3 in March, up from February’s 141.4 by 17.9 points representing 12.6%. Similarly, its yearly rise has been recorded at 34%.

The index works by measuring the monthly change in international prices of a basket of food containing various items including meat, dairy, cereals, vegetable oils and sugar. Over the past month, there have been record increases in the prices of corn and wheat, and their respective prices have risen as much as 29% and 37% in futures markets.

As per the FAO, global wheat prices increased by 19.7% during March, and maize prices went up by 19.1%.

Countries with high household income spent on food, primarily in the African an Asian regions, are facing inflation not only for food but also fuel. Even though the geopolitical reasons of the war originate in the West, its effects are likely to adversely impact economically weaker countries in the regions mentioned above.

 Russia is a major supplier of fertilizer, with a 15% global share in nitrogenous fertilizers and 17% in potash fertilizer exports. The FAO states that over the past three years, both Russia and Ukraine accounted for 30% and 20% of global wheat and maize exports respectively.

Read: African, Arab Countries' Food Dependence On Russia, Ukraine

Inflation By Product: Prices Rise For Cereal, Vegetable Oil, Sugar, More

Here is a brief summary of monthly increases in food price index in March 2022, as per the FAO:

  • Wheat: 19.7%
  • Maize: 19.1%
  • Cereals: 17.1%
  • Vegetable Oil: 23.2%, largely driven by higher prices of sunflower seed oil, one of Ukraine’s major exports
  • Sugar: 6.7%, driven mainly by higher crude oil prices
  • Meat: 4.8%
  • Dairy: 2.6%
For the full report, visit this page on the FAO website.

World Bank Figures On Russia, Ukraine's Share In Essential Exports 

The impct of the crisis will be felt by lower-income countries more, compounded by the ongoing economic recovery from the pandemic. The World Bank's figures of the contribution of Russia and Ukraine to global exports of agricultural, minerals, and natural gas. This data pertains to March 2022. 


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