Food prices continue to rise with the UN’s FAO index elevated again in February as the index rose 3.9% on the prior month to 140.7 points in February – reaching a new all-time high exceeding the previous record of February 2011 by 3.1 points.
The index increase was led by month on month increases for vegetable oil (+8.5%) and dairy (+6.4%). The February increase for the dairy price index marks the sixth monthly increase, with the index now 28 points above its value in February 2021. The dairy index rose on firming global dairy prices underpinned by the continued tightening of global markets on the back of lower-than-expected milk supplies in Western Europe and Oceania. Continued strong import demand from North Asia and the Middle East amidst tight global supplies has driven steep increases in cheese and milk powder quotes.