Food prices, as reflected in the FAO Food Price Index, rose to a three-year high in 2020. While the Index closed the year 3.1 percent higher than 2019, however, it remained well below the peak seen in 2011.
In addition to this year-on-year increase, the December Food Price Index also showed a rise of 2.2 percent from November. This marked the seventh straight monthly increase in food prices.
The Cereals Price Index rose for the sixth straight month in December, up by 1.1 percent from the previous month. Tightening supplies, potentially negative growing conditions in several regions, and the announcement of an export quota from Russia combined to drive up wheat prices. Maize prices also rose as a result of concerns over crop forecasts in South America, combined with spillover effects from spiking soybean prices. Decreased supplies and increased purchases drove up global rice prices.
Overall in 2020, the Cereal Price Index rose by 6.6 percent from the previous year, the highest annual average seen since 2014. Wheat and maize prices rose by 5.6 and 7.6 percent, respectively, due to reduced supplies and strong demand. Rice prices rose 8.6 percent from 2019; this six-year high was driven by falling production in several exporting countries, as well as temporary export restrictions enacted by some countries in the face of the COVID-19 pandemic.
Overall in 2020, the Cereal Price Index rose by 6.6 percent from the previous year, the highest annual average seen since 2014. Wheat and maize prices rose by 5.6 and 7.6 percent, respectively, due to reduced supplies and strong demand. Rice prices rose 8.6 percent from 2019; this six-year high was driven by falling production in several exporting countries, as well as temporary export restrictions enacted by some countries in the face of the COVID-19 pandemic.
