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The unfolding crisis in Ukraine has roiled commodity markets and threatens global food security. Ongoing fallout from the COVID-19 pandemic and other factors have already driven up food prices. Poor harvests in South America, strong global demand, and supply chain issues have reduced grain and oilseed inventories and driven prices to their highest levels since 2011-2013.

Food prices are skyrocketing around the world. In January, international prices for major food items climbed to a level near the heights of the global food price crises of 2007-08 and 2010-11, according to the FAO Food Price Index (Figure 1). The spike has raised concerns over the potential for another global food crisis, increasing hunger among the poor and, possibly, social unrest around the world.

In December 2021, the FAO Food Price Index fell by 0.9 percent from the previous month, with vegetable oils and sugar prices both seeing significant declines. However, in 2021 overall, the Index reached a 10-year high and was up by 28.1 percent above 2020 levels.

Fruits and vegetables are a key source of micronutrients in diets, and adequate fruit and vegetable consumption can help stave off non-communicable diseases. The World Health Organization (WHO) recommends that adults consume 400 grams of fruits and vegetables every day. Yet globally, fruit and vegetable consumption often falls far below that target, and research suggests consumption is particularly low in low- and middle-income countries (LMICs).

The FAO Food Price Index continued to rise in November, up 1.2 percent from the previous month and 27.3 percent from November 2020. This increase, driven mostly by rising cereal and dairy prices, brought the Index to its highest level since June 2011.