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The global price index prepared by the United Nations is moving further and further away from the historical highs reached months before. However, prices are still 13.1% higher than last year. Dairy products are the ones that rise the most.
Of the group of the five most commercialized food categories in the world, dairy products and cereals are the ones that have raised their price the most in the last year, according to a report delivered this Friday by the United Nations Organization.
Dairy products increased their price by 25% in July compared to the same month last year, due to the shortage of world supply reported by the Food and Agriculture Division of the UN (FAO).
Meanwhile, the value of cereals grew 16.6% year-on-year, driven by wheat prices, a quarter higher than a year ago.
the @FAO Food Price Index averaged 140.9 points in July, ?8.6% from June, marking the 4th consecutive monthly decline.
Major cereal & vegetable oil prices recorded double-digit percentage decline.
The Index remained 13.1% higher than in July 2021.
? https://t.co/YW5pp7MWEg pic.twitter.com/m3IZaJQntg
— FAO Newsroom (@FAOnews) August 5, 2022
The trend, however, has been down for several months. The values compared to previous months show a decrease and show that the worst consequences of the war in Ukraine on food prices may have already passed.
In July, the price of the basket of five food groups fell by 8.6% compared to June, for the fourth consecutive month, a behavior led by notable decreases in vegetable oils and cereals compared to previous months.
Wheat alone plummeted 14.5%, in part due to an agreement reached between Ukraine, Russia, Turkey and the United Nations to unblock grain exports from Black Sea ports. Compared to July 2021, however, the price is much higher.
Bittersweet news for world food
The FAO food price report points out that the impact of the Russian invasion of its neighbor has been compounded by the effects of the weather and the high costs of production and transportation.
“The fall in food commodity prices from very high levels is welcome, however many uncertainties remain,” said FAO Chief Economist Máximo Torero.
A gloomy global economic outlook, currency volatility and high fertilizer prices, which may affect future production and farmers’ livelihoods, pose serious pressure on global food security, it added.
With Reuters and EFE
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