Global food prices rose in February after five months of decline

In February, the global food price index calculated by analysts of the Food and Agriculture Organization of the United Nations (FAO) averaged 125.3 points. This is 1.1 points (0.9%) higher than the revised January level, according to the organization.

FAO notes that the increase in the index was driven by higher prices for cereals, meat, and vegetable oils. These gains more than offset the decline in dairy product and sugar prices, resulting in the first increase in the index after five consecutive months of decline.

The average value of the cereal price index in February reached 108.6 points, which is 1.1 points (1.1%) higher than in January. At the same time, the indicator remains 4 points (3.5%) below the level recorded in the same period last year. In particular, global wheat prices rose by 1.8% in February. The increase was supported by reports of frost and potential crop damage in some regions of Europe and the United States. Additional upward pressure came from logistical difficulties in Russia and continued tensions in the Black Sea region.

Prices for coarse grains also increased moderately last month. While global corn prices remained generally stable, barley quotations continued to strengthen. This was linked to steady Chinese demand for Australian grain and purchases by North African countries in the European market.

Analysts also highlighted developments in the vegetable oil market. In February, the corresponding price index averaged 174.2 points, which is 5.6 points (3.3%) higher than in January. As a result, the indicator reached its highest level since June 2022. The increase was driven by rising prices for palm, soybean, and rapeseed oils, which more than offset the decline in sunflower oil prices.