Islamabad, 2 June 2023, GNP: The United Nations Food and Agriculture Organization (FAO) has revealed a significant drop in the global food prices index. The prices of the most traded food items globally hit the lowest point in two years in May.
In FAO’s official statement, the global food price index averaged 124.3 points in May, reflecting a decline from the revised figure of 127.7 in the previous month. Average price index for May represents the lowest level recorded since April 2021.
The slump in global food prices of dairy products, vegetable oils, and cereals, overshadowed modest increases observed in sugar and meat prices, media reported.
The revised index indicates a staggering 22% decrease from its peak in March 2022, which occurred during the onset of Russia’s invasion of Ukraine, reportedly.
Globally, this recent development in food prices holds significant implications for consumers, producers, and policymakers.
As prices for cereals, vegetable oil, and dairy have experienced a notable decline, it approves the affordability of food items. Individuals devastated by the economic challenges can potentially benefit from the reduced prices finding relief in their grocery bills.
The Food and Agriculture Organization (FAO) reported that the cereal price index declined by nearly 5% in May compared to the previous month.
This decrease was influenced by the expectation of abundant supplies and the extension of the Black Sea Grain Initiative.
While cereal prices dropped, international rice prices continued to rise in May. This was partly due to limited supplies in some exporting nations, as stated by the FAO.
In terms of vegetable oil, the FAO noted a significant decline of almost 9% in the price index from the previous month.
On the other hand, certain commodities like meat and sugar, have witnessed a specific surge in prices during this period. Comparatively, sugar prices demonstrated a 5.5% surge in May, marking the fourth consecutive monthly gain.
This rise demands further analysis and attention from market participants and stakeholders involved. Moreover, monitoring and evaluating these trends is crucial for maintaining a balanced and sustainable food market globally.