Global food costs climbed in February, breaking a five-month streak of declining prices, the United Nations’ Food and Agriculture Organization announced Friday from Paris.
The UN agency’s Food Price Index, which monitors monthly fluctuations in internationally traded food commodities, reached 125.3 points in February, marking an increase from January’s revised figure of 124.2 points.
Despite the monthly increase, the index remained 1% lower than February 2023 levels and nearly 22% beneath its March 2022 record high, which occurred following Russia’s invasion of Ukraine.
Grain costs jumped 1.1% compared to the prior month, with wheat experiencing a 1.8% price surge driven by weather concerns across Europe and the United States, plus ongoing transportation challenges in Russia and throughout the Black Sea area. Wheat prices remained 3.5% lower than year-ago levels.
Rice costs edged upward by 0.4%, bolstered by continued strong demand for basmati and Japonica rice types.
Vegetable oil prices surged 3.3%, hitting their highest point since June 2022. Palm oil costs increased due to robust worldwide demand and reduced production in Southeast Asia, while soybean oil prices climbed on anticipated U.S. biofuel policy support.
Meat prices advanced 0.8% from January, driven by record-high sheep prices and increased beef demand from the United States and China.
Dairy costs declined 1.2%, continuing a multi-month downward trend primarily caused by falling cheese prices within the European Union. However, prices for both skim and whole milk powder plus butter rose due to strong demand amid limited supplies from major exporting nations.
Sugar prices plummeted 4.1% to their lowest point since October 2020, reflecting projections of abundant global supplies, including record production in the United States.
In a related forecast, the FAO modestly increased its 2025 global grain production estimate to a record 3.029 billion metric tons, incorporating minor revisions primarily to corn and rice projections. This represents a 5.6% year-over-year increase.
Global grain reserves are expected to grow by the end of the 2026 season, with the worldwide stocks-to-use ratio projected at a healthy 31.9%.
