Global food prices fall even as grocery inflation rages

In Britain and Ireland, the annual grocery price has been running at 16.7% and 15.4%, respectively. File picture

Global food costs capped their longest run of monthly declines in at least three decades, bucking soaring supermarket prices that are squeezing households.

A United Nations’ index of food-commodity costs fell 0.8% in January, a 10th straight drop and the longest run in data going back to 1990. 

Prices have slipped 18% from a record in March, when Russia’s invasion of Ukraine disrupted crop flows from the major supplier.

Still, the UN gauge remains historically high and it takes a while for changes to filter though to what people pay at the grocery store. 

Supermarket prices have soared around the world on the back of high energy, transport and labor costs, adding to the cost-of-living crisis and worsening global hunger. In Britain and Ireland, the annual grocery price has been running at 16.7% and 15.4%, respectively.     

Food giants have warned that retail prices will rise further, particularly as last year’s cost inflation and wage rises feed through. 

The UN’s index, which tracks five major staples, declined last month due to lower vegetable oil, dairy and sugar prices, its Food and Agriculture Organisation said. It's at the lowest since September 2021. 

Bloomberg and Irish Examiner