Global food prices increased in May to 127.1 points indicating the biggest month-on-month gain in more than a decade. This is 5.8 points higher than in April and 36.1 points above prices recorded the same time last year, according to the FAO Food Price Index, a monthly tracker for changes in global food prices.
In May, prices for oils, sugar and cereals surged — up 12.7 points, 6.8 points and 7.6 points from April, respectively. Cereal prices especially are on track to reach record highs — FAO is predicting an output of nearly 3 billion tons in 2021, a 1.9% increase from 2020. International maize prices rose the most by 8.8%, reaching 89.3% above their value last year; however, they fell toward the end of the month due to an improved production outlook in the U.S.
The pandemic caused major fluctuations in the food supply chain — from a shortage in workers to price increases in raw materials. As the world starts to reopen, demand from consumers is rebounding quicker than supply itself. As a result, in the past year, grocery bills in the U.S. rose by 7% to 10% compared to pre-COVID bills.