FAO reviews says costs of food remained elevated for second month. File
| Photo Credit: SUSHIL KUMAR VERMA
The United Nations food agency’s world price index rose for a second consecutive month in April as greater meat costs and slight beneficial properties for vegetable oils and cereals outweighed decreases for sugar and dairy merchandise.
The Food and Agriculture Organization’s (FAO) price index, which tracks probably the most globally traded food commodities, averaged 119.1 factors in April, up from a revised 118.eight factors for the earlier month, the agency mentioned on May 3.
ALSO READ | Wholesale price inflation rises to three-month high of 0.53% in March
The FAO’s April studying was nonetheless 7.4% under the extent a yr earlier.
The indicator hit a three-year low in February as food costs continued to maneuver again from a file peak in March 2022 in the beginning of Russia’s full-scale invasion of fellow crop exporter Ukraine.
In April, meat confirmed the strongest acquire in costs, rising 1.6% from the prior month. Higher costs for poultry, beef and sheep meat offset a small fall for pork, which was affected by sluggish demand in Western Europe and from main importers, particularly China, the FAO mentioned.
The FAO’s cereal index inched up to finish a three-month decline, supported by stronger export costs for maize (corn). Vegetable oil costs additionally ticked greater, extending earlier beneficial properties to succeed in a 13-month excessive on account of power in sunflower and rapeseed oil.
The sugar index dropped sharply, shedding 4.4% from March to face 14.7% under its year-earlier stage amid bettering international provide prospects.
Dairy costs edged down, ending a run of six consecutive month-to-month beneficial properties.
2024 brings breather on inflation but food prices are still sticky
In separate cereal provide and demand information, the FAO nudged up its estimate of world cereal manufacturing in 2023/24 to 2.846 billion metric tons from 2.841 billion projected final month, up 1.2% from the earlier yr, notably on account of up to date figures for Myanmar and Pakistan.
For upcoming crops, the agency lowered its forecast for 2024 international wheat output to 791 million tons from 796 million final month, reflecting a bigger drop in wheat planting in the European Union than beforehand anticipated.
The revised 2024 wheat output outlook was nonetheless about 0.5% above the earlier yr’s stage.