Good news from the UN Food and Agriculture Organization: Prices are falling!
The Food Price Index of the United Nations Food and Agriculture Organization FAO, which has been hurt by the war between Ukraine and Russia, declined in July.
The index, which tracks the monthly price changes of food commodities, which are widely traded in international markets, decreased by 8.6 percent in July to 140.9 points.
The index was at 154.3 in June.
Despite the monthly decrease, the index increased by 13.1 percent compared to July 2021.
This increase is attributed to the Russian invasion of Ukraine and unfavorable weather conditions, as well as increased production and transportation costs.
The decline in the international prices of vegetable oils, cereals, sugar and dairy products and meat was effective in the decline in July.
FAO Chief Economist Maximo Torero said, “It is pleasing that food commodity prices have fallen below very high levels. But uncertainty continues in many areas,” he said.
Torero said the gloomy global economic outlook, currency volatility and high fertilizer prices pose a serious threat to food security.
PRODUCTS WITH REDUCED PRICE
Vegetable oil, sugar, meat and grain prices decreased in the Food Price Index. Wheat prices decreased by 14.5 percent.
News agencies stated that the agreement reached between Ukraine, Russia, Turkey and the United Nations, which removed the obstacles to grain exports from the Black Sea, was effective in this decrease to some extent.
Another factor is the start of the harvest season in the Northern Hemisphere.
Despite this, grain prices are 16.6 percent higher than in the same period last year.
OIL PRICES ARE AT THE LOWEST LEVEL OF THE LAST 10 MONTHS
Vegetable oil index decreased by 19.2 percent in July. It was observed that the prices of all oil types in the index decreased. It is stated that oil prices are at their lowest level in the last 10 months.
On a monthly basis, the sugar price index decreased by 3.8 percent, the dairy products price index by 2.5 percent and the meat price index by 0.5 percent.