Global food prices dropped in July — FAO

By Olaseinde Gbenga

The United Nations’ Food and Agricultural Organisation (FAO)’s monthly food price index report has revealed that the global food prices dropped for the fourth consecutive month in July.

The food price index report, which tracks global commodities, showed that prices of vegetable oil and cereals declined significantly, and averaged 140.9 points in July, down 8.6 per cent from June, the steepest monthly fall since October 2008.

The Cereal Price Index recorded 11.5 per cent decline in the same month, about 16.6 per cent above July 2021.

According to the report, despite the monthly decline, the July index was 13.1 per cent higher than the same period in 2021 as occasioned, in part, by the economic impact of the Russian invasion of Ukraine.

Also, the index indicated that prices of all cereals declined, led by wheat, noting that global wheat prices dropped by as much as 14.5 per cent, partly in reaction to the Russia –Ukraine deal on grain exports from key black sea ports and seasonal availability from ongoing harvest in the northern hemisphere.

Speaking on the report, Chief Economist at FAO, Maximo Torero, said “The decline in food commodity prices from very high levels is welcome, especially when seen from a food access viewpoint.

“However, many uncertainties remain, including high fertiliser prices that can impact future production prospects and farmers’ livelihoods, a bleak global economic outlook, and currency movements, all of which pose serious strains for global food security.”