World food prices rose by 28 percent last year to the highest level in the past ten years. According to the United Nations food agency, the hope for a return to more stable market conditions this year is small.
The Food and Agriculture Organization's (FAO) food price index, which tracks the most widely traded food products worldwide, averaged 125.7 points last year, the highest level since 131.9 in 2011.
The monthly index fell slightly in December but had risen for four consecutive months due to disappointing harvests and strong demand. In December, prices for all categories in the food price index decreased except for dairy products, the agency said in its monthly update.
The higher food prices contributed to a sharper rise in inflation as economies recover from the coronavirus crisis. The FAO has warned that the increased costs threaten poorer populations in countries heavily dependent on imports.
In its latest update, the food agency was cautious about whether the price pressures could ease this year.