Global food prices soar in May

Photo: EPA

Global food prices surged in May at its fastest pace since October 2010, BBC reported. The foods rose by 39.7 % on monthly basis, a report by the UN Food and Agriculture Organisation (FAO) showed. The robust growth of prices was largely due to pandemic restrictions which disrupted deliveries in some parts of the world. The UN uses a broad index of global food costs, which have also climbed for 12 months in a row.

Suppliers have been affected by disruptions to production, labour and transport during the pandemic. Concerns are growing about broader inflation and how higher grocery bills will impact the world's economic recovery.The FAO food price index tracks prices around the world of a range of food including cereals, oilseeds, dairy products, meat and sugar. All five components of the index rose, led by the surging cost of vegetable oils, grain and sugar. That pushed the index up to its highest overall level since September 2011. The increased costs are a result of renewed demand in some countries and a backlog of low production. Experts had warned that high demand and low production would lead to rising inflation as economies exit lockdown.

However, some industries could see a strong recovery. The FAO forecasts record global cereal production this year, which may help to ease upward price pressures.

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