Global Food Prices in May Rose by 4.8% from April

According to the United Nations, the monthly rate of global food prices is climbing at its fastest pace in over a decade. The UN Food and Agriculture Organization uses a broad index to track prices around the world.

This index of global food costs has also climbed for 12 months in a row, pushing it to its highest level since September 2011. There have been growing concerns that this continued growth in food prices will significantly hinder the world’s economic recovery.

The UN FAO’s index reported that food prices increased by 4.8% from April to May, which is the largest monthly rise to have been observed since October 2010. May 2021’s rates were also 39.7% higher compared to the same period of the previous year.

Rising food costs can be attributed to the renewed demand of certain countries accompanied by low production. As markets continue to be disrupted by movement restrictions, supply shortages and higher prices will follow resulting in the growth of inflation.

Source: BBC