Global food prices have resin at the fastest monthly rate in more than a decade for the 12th consecutive month during May.
The rise in global food prices is the highest level since September 2011, according to the Food and Agriculture Organization of the United Nations (FAO).
FAO also issued its first forecast for global cereal production in 2021, which amounted to about 2.821 billion tons, which is a new record, 1.9% above 2020 levels.
Global food prices
The FAO Food Price Index, which measures monthly changes for a basket of cereals, edible oils, dairy products, meat and sugar, averaged 127.1 points last month, compared to a revised reading of 121.3 points in April.
The previous reading for April was 120.9 points. On an annual basis, prices in May rose 39.7%.
The FAO said its estimates for record global cereal production this year were backed by a forecast of 3.7% annual growth in maize production. Global wheat production is also expected to increase by 1.4%, and rice production by 1%.
High consumption of grain
Global cereal consumption is expected to rise in 2021-2022 by 1.7% to a new peak of 2.826 billion tons, slightly above production levels.
Last April, a report indicated that food prices continue to rise and push the inflation index towards the red line, i.e. the target rate set at 2% by the US Central Bank.
According to the report, Kimberly Clark, the largest American food company, plans to increase the prices of most of its products this month.
The company justifies the proposed increase in prices by compensating the costs of the raw materials it uses in the manufacture of food products.
In the same regard, the American company, General Mills, said it would raise the prices of its products to compensate for the rise in shipping and manufacturing costs.
In February, the company Hormel Foods raised the prices of its meat products due to the increase in the price of grains.
In London, many supermarkets have risen food prices over the past months under conflicting arguments.
While food prices will continue to rise until the end of this month, according to the expectations of research centers, global fears are raised of a famine in poor countries that depend on importing foodstuffs and grains, and do not find enough money to pay the food bill amid the high exchange rate of the dollar.