The Food and Agriculture Organization of the United Nations (FAO) announced the Global Food Price Index data for July, which tracks monthly changes in the international prices of a basket of food commodities.
11.8 percent below
According to the data, the food price index increased by 1.3 percent in July compared to the previous month and rose to 123.9 points. Food prices were 11.8 percent below the same period of last year in July.
Food prices increased in July due to the end of the Black Sea Grain Initiative and new trade restrictions on rice.
Rise in vegetable oil prices
The rise in the food index was fuelled by the rise in the Vegetable Oil Price Index in July after 7 months of decline. The Vegetable Oil Price Index rose by 12.1 percent month-on-month to 129.8 points in July. This significant increase in July stemmed from high world quotations for sunflower, palm, soybean and rapeseed oils.
Sunflower oil prices increased by more than 15 percent on a monthly basis due to uncertainties over exportable supplies from the region following Russia’s decision to end the Black Sea Grain Initiative.
The Grain Price Index fell 0.5 percent month-on-month to 125.9 points in July. The Grain Price Index also decreased by 14.5 percent compared to the same period last year.
However, the 9-month downward trend in international wheat prices ended in July with an increase of 1.6 percent following the decision to end the Black Sea Grain Initiative. Continued dry conditions in Canada and the US also added to the pressure on wheat prices.
Rice prices rose 2.8 percent in July, the highest level since 2011. India’s ban on rice exports and the pressure of purchases in Asia contributed to the increase.
The Dairy Price Index fell by 0.4 percent, the Meat Price Index by 0.3 percent and the Sugar Price Index by 3.9 percent on a monthly basis in July.