Higher food prices in perspective
According to the Food and Agriculture Organization of the United Nations (FAO), food prices have increased sharply since the very low levels of 2020. Food prices in December 2021 were 23% higher year-on-year (y/y).
The increase in international food prices was driven by economic recovery after the initial COVID-19 downturn. Demand exceeded supply and transport bottlenecks further limited supply. Freight charges rose sharply; the Baltic Dry Index (an indicator of international freight charges), increased
