Food Prices

Russia’s 2022 invasion of Ukraine triggered global disruptions in markets for key food crops and fertilizers, threatening food security worldwide. With the war now entering its second year, high international food prices have moderated, though domestic price levels remain high in many low- and mid-income countries. Here, we turn to global fertilizer markets, examining how they weathered the past year and the likely impacts going forward for agricultural production and food security.

The FAO Food Price Index continued to drop slightly in February, reaching almost 19 percent below its March 2022 peak. This represents the eleventh consecutive month of decline.

Food prices fell by 0.8 percent in January, according to the FAO Food Price Index. This latest decline brings the Index to the lowest point seen since its peak in March 2022.

Almost a year after the February 2022 Russian invasion in Ukraine, fears of a period of sustained high global food prices have subsided somewhat, but eight major concerns for food security remain.

The FAO Food Price Index continued its nine-month decline in December 2022, falling by an additional 1.9 percent. The decline was driven mostly by falling vegetable oil, cereal, and meat prices. However, overall in 2022, the Index was over 14 percent higher than its 2021 level, reflecting continued high prices driven by conflict, climate, and market concerns.