World food prices began to decline after rising in July
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World food prices fell in August after rising slightly in July, the UN Food and Agriculture Organization (FAO) said. The FFPI food price index fell to 121.4 points over the past month. Compared to July, the figure decreased by 2.1%.
“In August 2023, the FAO Food Price Index averaged 121.4 points, down 2.1% from July and a full 24% below the peak reached in March 2022. The index growth observed in the previous month was leveled out. The recorded decrease was due to a fall in the value of price indices for dairy products, vegetable oils, meat and grains against the backdrop of a moderate increase in the price index for sugar,” the report says. reporting FAO.
According to FAO monitoring data, international wheat prices fell by 3.8% in August amid increased seasonal supply from several leading exporters. International coarse grain prices fell 3.4% last month on the back of abundant global corn supplies due to a record harvest in Brazil and the imminent start of harvest in the United States.
The FAO Vegetable Oil Price Index fell 3.1% in August, partly offsetting a sharp 12.1% rise in July. As specified in the report, world prices for sunflower oil decreased by almost 8% over the month. The FAO attributed the decline to weakening global import demand and good supply from major exporters.
At the same time, the rice price index has increased by 9.8% since July and reached a 15-year nominal maximum against the backdrop of a general decline in the index and the cost of basic food products. Experts attributed the rise in prices to trade disruptions following India’s ban on white rice exports last month.
Compared to July, the sugar price index also increased – +1.3%. The FAO attributed this result to growing concerns about the impact of the El Niño climate phenomenon on sugarcane crops, as well as low rainfall and persistent dry weather in Thailand. Aspects holding back the growth of sugar prices were the good current harvest in Brazil, as well as lower ethanol prices and the weakening of the Brazilian real.
In July, the food price index rose to 123.9 points (by 1.3% compared to June), but decreased by 11.8% by July 2022. The price index for vegetable oils increased sharply – to 129.8 points (+12.1% compared to June). This was the first increase after seven months of decline.
Read more about the results of July in the Kommersant publication. “Food is becoming more expensive again”.
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