World food prices rose 28 percent last year to the highest level in the past ten years. According to the United Nations food agency, hopes for a return to more stable market conditions this year are slim.
The food price index of the Food and Agriculture Organization (FAO), which records the most globally traded food products, 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 the past four months in a row due to disappointing harvests and strong demand. In December, prices fell for all categories in the food price index except dairy, the agency said in its monthly update.
Higher food prices have contributed to a stronger rise in inflation as economies recover from the coronavirus crisis. The FAO has warned that the higher costs endanger poorer populations in countries that are mainly dependent on imports.
In its latest update, the food agency was cautious about whether price pressures could ease this year.