FAO: World food prices are falling for the tenth month in a row

In January, the base value of the index of world food prices continued to decline for the tenth month in a row. This is stated in the data of the Food and Agricultural Organization of the United Nations.

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► Read the “Ministry of Finance” page on Facebook: главные финансовые новости The average value of the FAO Food Price Index in January was 131.2 points, which is 0.8 percent lower than its December level and 17.9 percent lower than the peak value reached in March 2022 year

The decrease in the value of this index in January was caused by a decrease in the value of the indices of prices for vegetable oils, dairy products and sugar against the background of generally stable prices for grain and meat. In January, the value of the price index for grain practically did not change, it exceeded its December level by only 0.1 percent, and by 4.8 percent – the indicator for the same period last year. In January, the price index for vegetable oils decreased by 2.9 percent. Sluggish global import demand exerted downward pressure on global palm and soybean oil prices, while sunflower and rapeseed oil prices fell due to significant export supply.

Read also: World food prices in 2022 reached a record level – UN

The average value of the price index for dairy products was 1.4 percent below its December value: the fixed trend is due to a decrease in the prices of butter and milk powder against the background of reduced demand from leading importers and increased supplies from New Zealand. World prices for cheese rose slightly, which is due to the recovery of business activity in the field of public catering and retail sales in Western Europe after the New Year holidays, as well as fluctuations in exchange rates.

The value of the meat price index changed slightly (it decreased by only 0.1 percent compared to its December level): the presence of significant export stocks caused a decrease in the prices of poultry, pork and beef, while the strengthening of import demand led to an increase in export lamb prices. The value of the sugar price index turned out to be 1.1 percent below its December level.