Food Prices

Recent shocks from the COVID-19 pandemic to the ongoing Russia-Ukraine war have disrupted global food and fertilizer supply chains—causing price spikes and increased price volatility—a disastrous combination for many vulnerable consumers around the world.

The FAO Food Price Index rose by nearly 1 percent in May due to increased cereal and dairy prices. It remained 3.4 percent below its May 2023 levels and nearly 25 percent below the peak seen in March 2022.

Recent disruptions in rice production and trade, coupled with adverse weather conditions, have increased global rice prices, impacting food security and economic stability across Asia and the Pacific. Short-term and long-term strategies are needed to ensure a stable, affordable rice supply.

In global food markets, few commodities hold as much significance as rice. It's not just a staple food; it's a lifeline for millions, especially across Asia where it forms up to 70% of daily caloric intake and a significant share of the food price basket in certain economies. 

The FAO Food Price Index rose marginally in April but remained 7.4 percent below its April 2023 level. The slight increase was driven by rising meat, vegetable oil, and cereal prices.

After seven months of declines, the FAO Food Price Index rose slightly in March due to increased vegetable oil, dairy, and meat prices. The Index remained 7.7 percent below its March 2023 levels.