Global Food Prices See End to Seven-Month Decline

According to data from the Food and Agriculture Organization (FAO) of the United Nations, global food prices saw an uptick in March, putting an end to the previous seven-month decline. The index recorded a 7.7% decrease on an annual basis.

End to Seven-Month Decline: Global Food Prices on the Rise

In March, global food prices reversed their trend of decline, which had persisted for seven consecutive months. The World Food Prices Index compiled by the FAO tracks monthly changes in items such as grains, oilseeds, dairy products, meat, and sugar. After the revised level of 117 in February, the index rose to 118.3 in March.

This indicates a 1.1% increase compared to the previous month, but still shows a 7.7% decrease compared to the same period last year. The food price index in February hit its lowest level in three years.

Changes in Meat, Dairy, Sugar, Oil, and Grain Prices

The increase in March was driven by rises in international prices of vegetable oils, dairy products, and meat.

The FAO Vegetable Oil Price Index rose by 8% in March. The increase in prices of palm, soybean, sunflower, and rapeseed oils contributed to the index’s rise.

The FAO Dairy Price Index increased by 2.9%, led by increases in cheese and butter prices.

The FAO Meat Price Index rose by 1.7% on a monthly basis, driven by increases in prices of poultry, pork, and bovine meats.

However, the FAO Cereal Price Index declined by 2.6% in March. This decrease was attributed to the decline in global wheat export prices due to strong export competition between the EU, Russia, and the US.

Meanwhile, the FAO Sugar Price Index declined by 5.4% compared to February, with the increase in sugar production estimates in India and the acceleration of harvesting in Thailand contributing to the decrease.