Another surge in the value of FAO Food Price Index in January
- 04 February 2021
The FAO Food Price Index (FFPI) averaged 113.3 points in January 2021, 4.7 points (4.3 percent) higher than in December 2020, not only marking the eighth month of consecutive rise but also registering its highest monthly average since July 2014, according to report of Food and Agriculture Organization (FAO) of the United Nations, APA-Economics reports.
The latest increase reflected strong gains in the sugar, cereals and vegetable oils sub-indices, while meat and dairy values were also up but to a lesser extent.
The FAO Cereal Price Index averaged 124.2 points in January, marking a sharp increase of 8.3 points (7.1 percent) from December and the seventh consecutive monthly rise. International maize prices increased significantly, surging by 11.2 percent in January, up 42.3 percent above their January 2020 level, reflecting increasingly tight global supply with lower-than-earlier-expected production and stock estimates in the United States of America and substantial purchases by China.
The FAO Vegetable Oil Price Index averaged 138.8 points in January, up 7.7 points (or 5.8 percent) from December and marking the highest level since May 2012. The index’ eighth consecutive monthly increase mainly reflected higher palm, soy and sunflowerseed oil prices. With palm oil production in both Indonesia and Malaysia turning out lower than earlier expected due to excessive rainfall (and, in the case of Malaysia, continued shortages in migrant labour force), international palm oil quotations climbed to eight-and-a-half year highs.
The FAO Dairy Price Index averaged 111.0 points in January, up 1.7 points (1.6 percent) from December 2020, rising for the eighth consecutive month and placing the index at 7.1 points (6.9 percent) above its value in the corresponding month last year.