Food Prices

High food price inflation—driven by disruptions from the COVID-19 pandemic, climate shocks, and the war in Ukraine—has made the affordability of food and food insecurity top global concerns. Even before the current rise in prices, 3.1 billion people, about 40% of the global population, could not afford a healthy diet, according to the United Nation’s 2022 State of Food Security and Nutrition in the World (SOFI) report.

In May, the FAO Food Price Index declined by 0.6 percent from the previous month, driven by the drop in vegetable oils, sugar and dairy prices, while meat and cereal prices rose. The Index is still 22.8 percent above May 2021 levels.

The World Trade Organization’s 12th Ministerial Conference (WTO MC12) takes place June 12-15 in Geneva—two years after the pandemic forced members to postpone its original schedule. In those two years, the world has changed and the importance of multilateral approaches to tackle international trade issues has become even more acute.

The Group of Seven wealthy nations (G7), currently led by the German presidency, has put a welcome focus on the global food insecurity and nutrition crisis unleashed by the war in Ukraine, with the most severe impacts falling on vulnerable populations in low- and middle-income countries (LMICs). The two May G7 meetings produced four separate communiqués, each of them dozens of pages long (the development ministers communiqué alone was 23 pages!) and a G7-led Global Alliance for Food Security was announced.

With the war in Ukraine continuing to disrupt global food markets and contribute to rising and volatile food prices, international policymakers are calling for coordination and humanitarian aid to prevent the situation from escalating into further food crisis.