Global food prices are decreasing for the fourth month in a row
Average global food prices continue to decrease for the fourth month in a row. In July, the price index of the Food and Agriculture Organization of the United Nations (FAO) decreased by 8.6% from the price level in June.
In July, the Food Price Index was 140.9 points, 13.3 points (8.6%) below the June level.
"The July decrease in this index value became the sharpest since October 2008 and is caused by a large-scale reduction in the values of the price indices for vegetable oils and grains and a somewhat less significant reduction in the values of the price indices for sugar, dairy products, and meat," analysts note.
The average value of the grain price index in July reached 147.3 points, 19.1 points lower than in June. It was influenced by the drop in world grain prices.
The average price index for vegetable oil in July fell by 40.7 points or 19.2% to the minimum value for the last 10 months and amounted to 171.1 points. The sharp drop in average prices is explained by the decline in world prices for palm, soybean, rapeseed, and sunflower oils.
The price index for dairy products was 146.4 points, which is 3.8 points (2.5%) lower than the June indicator. International quotations of skimmed milk powder, butter, and whole milk powder, decreased the most because of the weak market activity in Europe due to the onset of the summer vacation period.
The meat price index in July was 124.0 points (0.6 points or 0.5% below June prices).
The average value of the sugar price index in July was 112.8 points – 4.4 points (3.8%) lower than its June value.
"International sugar quotas have been affected by concern in connection with the expected further slowdown of the world economy in 2022 and the associated decrease in demand," explained the FAO.