Global Food Prices Ease in July: FAO Report

The United Nations' July world food price index showed a slight decline, with a drop in cereal prices offset partially by rising meat, vegetable oils, and sugar prices. The FAO's index average dipped to 120.8 points from June’s revised 121.0. Wheat and maize prices fell due to favorable conditions and progressing harvests.

According to data released on Friday, the United Nations world food price index slightly eased in July. This was marked by a decline in cereal prices, although there were increases in prices for meat, vegetable oils, and sugar.

The U.N. Food and Agriculture Organization's (FAO) price index, which monitors the prices of the most globally traded food commodities, averaged 120.8 points in July, a slight decrease from June's revised 121.0 points. The FAO Cereals Price Index experienced a 3.8% drop, reaching its lowest level in nearly four years, as global export prices for major cereals fell for the second month in a row.

Wheat prices saw a decline due to seasonal availability from winter wheat harvests and favorable conditions for spring wheat crops in Canada and the U.S. Additionally, maize export prices dropped as harvests in Argentina and Brazil advanced faster than last year, and the U.S. crop conditions remained robust.

After four months of consecutive rises, the FAO food price index saw a dip in July. It is now 3.1% down compared to the same time last year and 24.7% below its record high point set in March 2022, following the Russia-Ukraine conflict.

(With inputs from agencies.)