UN: Food prices hit a 10-year high record

Published on November 14, 2021 12:13 AM AEDT

UN: Food prices hit a 10-year high record — Image source: Copyright © 2021 Kalkine Media

Highlights

Food prices have been increasing globally for the last three months.
Additionally, agriculture food prices have increased significantly in 2021.
Fluctuations in international food prices are caused by the interconnected changes happening in several factors.

As the economies recover from the catastrophic effects of the COVID-19 pandemic, another pandemic has set its foot. It’s the pandemic of high inflation. No one had earlier expected that prices would mount up so high in the recovery period. However, the reality is far more piercing.

Food prices have been increasing globally for the last three months. Consequently, October’s food price index reached records.

What has the Food and Agriculture Organisation of the UN revealed?

In a recent report published by the Food and Agriculture Organisation of the UN, it was revealed that October’s food price index reached a 10-year record. The prices haven’t been this high since July 2011.

The index was up by 31.3% in October. Because of the high rate of inflation, basic food commodities like vegetables and cereals have become expensive globally. Additionally, agriculture food prices have increased significantly in 2021.

Compared to September, in October oil prices increased by 9.6 percent, and cereal prices increased by 3.2 percent. Such a drastic increase in prices in a month is a significant cause of concern for policymakers and economists.

ALSO READ: Crude oil reaches 2-week high on rising demand

Whose shoulders are being crushed the most?

As the global average food prices are touching sky, the developing countries are suffering the most under the crust of inflation. Poor sections of the society have been finding it difficult to sustain during the pandemic and now with skyrocketing food prices, mere survival has become a struggle for thousands of people globally.

The leading causes of skyrocketing food prices

A recent report published by the World Economic Forum revealed that the primary cause of price increase is “COVID-19, fuel price and drastic weather conditions.” Fluctuations in international food prices are caused by the interconnected changes happening in several factors.

For instance, the rise in oil prices that started in April 2020 has a significant impact on food prices. Additionally, the supply chain has been severely impacted by the COVID-19 pandemic. And bad weather conditions due to deteriorating climate have caused inefficient harvest.

GOOD READ: Why the world needs a more sustainable & equitable food system?

Bottom line

Skyrocketing food prices are affecting the poor communities and countries the most. High levels of inflation have caused millions of people to struggle for the basic necessities of life. Thus, policy makers and economists need to come up with stringent ways to help people globally to come out of the sack of poverty and malnutrition.

Toshiva Jain

Author

Toshiva Jain - Junior Analyst
186 Posts
Toshiva is a Junior Research Analyst at Kalkine. She comes from a journalism and literature background, holding a specialisation in new media journalism. Toshiva completed her post-graduate diploma course from the Asian College of Journalism. Her foc...

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