Adjusted for inflation, FAO’s Food Price Index was up nearly 38 percent YOY in May on gains across all subindexes. The Index as up nearly 5 percent from April, the highest monthly gain since January 2015. (Not adjusted for inflation, it would be the strongest monthly gain since October 2010.)
FAO currently utilizes the 2014–2016 period as the benchmark for index calculations.
May’s real Food Price Index was the highest for any month since December 2010, the result of a full year of month-on-month gains. The subindexes with the highest YOY gains include oils, sugar, and cereals.
The real vegetable oils subindex made monthly gains over the past 12 months and closed May up a very strong 121 percent YOY on supply tightness for palm oil and rapeseed oil and higher biofuel and human use demand for soybean oil, all driving price gains.
The May sugar subindex was up nearly 7 percent from April and up 55 percent YOY. After gains in nine of the last 12 months, the subindex is at its highest point since April 2017.