Global food prices in December reached the highest levels ever recorded, according to new figures from the UN’s Food and Agriculture Organization (FAO).
The FAO’s Food Price Index – which tracks price changes in global food commodities such as rice and grains, sugar, dairy and meat – hit its highest level since records began in 1990.
Similar food price increases in 2007 and 2008 led to rioting in countries such as Bangladesh and Haiti, as the situation combined with global economic instability to push millions into poverty and
hunger.
The increase in global food costs coincides with the cost of wheat in the UK also hitting an all-time high, leading to concerns over the inflationary pressures this might present domestically.
Increased commodity prices have already led to some food producers changing recipes – seeking to substitute more expensive ingredients with cheaper alternatives – however despite such innovative thinking, it seems inevitable that some price increases will end up being passed directly to the consumer.
UK supermarkets do seem keen to buck this trend – with Morrisons launching its biggest ever Price Crunch campaign and Tesco pledging to cut prices on both branded and own brand goods in January – but with food commodity prices continuing to rise, and a VAT increase into the bargain, some are concerned at the sustainability of such deals.
