World food prices hit a record high in February: FAO

The Food and Agriculture Organization (FAO) Food Price Index, which tracks the world's most traded food products, averaged 140.7 points from 135.4, which was revised downward in January last month. This number was previously reported as 135.7.

The U.N. food agency has said that world food prices hit a record high in February, led by a surge in vegetable oils and dairy products to post a 20.7% increase year on year. 

As the economy recovers from the coronavirus crisis, rising food prices have contributed to a wider rise in inflation, and FAO has warned about the poor population being at risk due to higher costs in countries reliant on imports.

FAO economist Upali Galketi Aratchilage has also expressed concern over crop conditions and export availabilities provided only a partial explanation to the increase in global food prices. He also said that energy, fertilizers and feed sectors tend to squeeze the profit margin of food producers, discouraging them from investing and expanding production.

The data in the February report were largely edited before Russia invaded Ukraine. Concerns over tensions in the Black Sea region already weighed heavily on agricultural markets before the outbreak of violence, but analysts warn that prolonged conflicts could have a significant impact on grain exports.