Global food prices increased by 1.6 percent in February: FAO

World food prices rose 1.6 percent in February on a monthly basis, the U.N. Food and Agriculture Organization (FAO) said. 

While the meat price index remained stable last month, all other price indices saw increases, with the most significant increases seen in sugar, dairy, and vegetable oils, the organization stated.

World food prices are still 20.7 percent below the peak level reached in March 2022 – just after the start of the Ukraine war – the FAO added.

In February, the cereal price index rose 0.7 percent.

"Wheat export prices increased month-on-month, driven by tighter domestic supplies in the Russian Federation, which constrained export volumes and shifted demand to other suppliers, adding upward pressure on global prices,” said the FAO.

Vegetable oil prices rose 2 percent, driven by higher quotations across palm, rapeseed, soy and sunflower oils.

Dairy prices rose 4 percent, with prices across all major dairy products showing increases in February.

Sugar prices saw the highest increase in the month with 6.6 percent.

"The increase in world sugar prices was driven by concerns over tighter global supplies in the 2024/25 season,” it said.

"International poultry meat prices declined, driven by abundant global supplies primarily due to high export availabilities from Brazil, despite continuing avian influenza outbreaks in other major producing countries,” it added.

World food prices also rose 9.7 percent year-on-year in February.