The UN Food and Agriculture Organization's (FAO) food price index tracks prices around the world of a range of food including cereals, oilseeds,

UN: Cost of food rises at fastest pace in over a decade

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2021-06-07 16:00:13

The UN Food and Agriculture Organization's (FAO) food price index tracks prices around the world of a range of food including cereals, oilseeds, dairy products, meat and sugar.

According to the index, food prices in May were 4.8% higher than April - the biggest monthly rise since October 2010 - and 39.7% higher than this time last year (May 2020).

However, some industries could see a strong recovery. The FAO forecasts record global cereal production this year, which may help to ease upward price pressures.

Earlier this week, the British Retail Consortium (BRC) warned UK consumers that they could face more expensive shopping bills in the autumn as costs climb.

As well as giving a snapshot of the price of our shopping and services, it influences interest rates and therefore our mortgages and is used to set regulated items, such as train tickets.

It's one of the key measures of financial well-being, because it affects what consumers can buy for their money. If there is inflation, money doesn't go as far.