Food prices rise in January, UN agency says

The FAO dairy price index increased 2.4%
calendar icon 4 February 2022
clock icon 1 minute read

Rome-based FAO also raised its projection of global cereal production in 2021 to 2.793 billion tonnes from a previous estimate of 2.791 billion tonnes, according to its cereal supply and demand outlook.

FAO said its vegetable oils index rose 4.2% month-on-month in January to reach record levels, shunted higher by reduced export availabilities and other supply-side constraints, especially labour shortages and unfavourable weather.

"There is a concern the impacts of these constraints will not ease quickly," Boubaker Ben-Belhassen, head of FAO's Markets and Trade Division, said in a statement.

The FAO dairy price index increased 2.4%, its fifth consecutive monthly rise, with the steepest gains registered by skim milk powder and butter.

The cereal price index rose just 0.1%, with maize posting a 3.8% gain on the month, spurred by worries about persistent drought conditions in South America, FAO said.

By contrast, world wheat prices fell 3.1% on the back of large harvests in Australia and Argentina.

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