Global food prices increased in July due to rising international prices of meat and vegetable oils, according to a report by the United Nations Food and Agriculture Organization (FAO) published today, Friday (08/08).
The FAO Food Price Index rose 1.6% month-on-month, reaching 130.1 points in July, according to the report, with vegetable oils surging over 7% and meat prices climbing 1.2%.
Specifically, the vegetable oils price index jumped 7.1% month-on-month in July, reaching its highest level in three years at 166.8 units.
Palm oil, soybean oil, and sunflower oil prices contributed to this increase, with palm oil prices rising due to strong global demand and increased competitiveness. Sunflower oil prices also increased due to reduced export supplies from the Black Sea region. In contrast, rapeseed oil prices declined due to lack of new supplies in Europe.
The meat price index also rose 1.2% in July, reaching a new record of 127.3 units. Import demand, particularly from China and the US, drove increases in beef and sheep meat prices.
The dairy products price index recorded a small decline of 0.1% from June, reaching 155.3 points, marking the first drop since April 2024.
“Butter and milk powder prices decreased, reflecting abundant export supplies and restrained import demand, especially from Asia. However, international cheese prices continued to rise due to strong demand in Asian and Middle Eastern markets and reduced export availability in the European Union,” the report states.
The cereals price index also declined 0.8% month-on-month, reaching 106.5 points in July, while the sugar price index fell 0.2% to 103.3 points.
On the other hand, despite the monthly increase, the overall food price index remained 18.8% below the peak level reached in March 2022, but continues to be 7.6% higher than July 2023.
