Food prices keep rising in July: FAO

By Dilara Zengin

ANKARA

Global food prices increased in July due to higher cereal, sugar and dairy prices, the UN Food and Agriculture Organization (FAO) said on Thursday.

The food price index averaged 179.1 points in July, up 2.3 percent compared to June and 10.2 percent compared to the same period last year, according to the organization.

The food price index continued to rise in the last four months – at 168.9 points in April, 172.9 points in May and 175.2 points in June.

FAO said that the global food price index had reached its highest level since January 2015.

The FAO’s trade-weighted index tracks international market prices of five major food commodity groups.

The sugar price index saw the highest monthly rise in July with 5.2 percent, marking the first monthly increase since the beginning of the year.

"Despite the latest increase, sugar prices remain well below (26 percent) when compared to the corresponding period last year," FAO noted.

The cereal price index increased by 5.1 percent and continued rising consistently over the last three months because of firmer wheat and rice prices, the organization said.

FAO noted that the dairy price index had also rose 3.6 percent month-on-month in July due to stronger prices of butter, cheese and whole milk powder.

The vegetable oil prices, by contrast, fell by 1.1 percent in July, compared to June and it saw its lowest level since August 2016, the organization stated.

The meat prices remained steady in July, FAO noted, adding: "An increase in international prices for ovine meat in July was offset by downward price movements in bovine, pig and the poultry sectors."