Global Food Price Index Rises Again After One Month, with Sugar Up 5.6% and Grains Up 3.4%

[Financial News] The FAO Food Price Index (FFPI) has turned upward again, just one month after reversing its decline. Higher prices for grains, sugar and vegetable oils were the main drivers.
According to the Ministry of Agriculture, Food and Rural Affairs (MAFRA) on the 8th, last month’s FFPI published by the Food and Agriculture Organization of the United Nations (FAO) stood at 131.1 points, up 0.6% from 130.3 points in the previous month. It was also 1.0% higher than in the same month last year.
So far this year, the FFPI has continued to rise, from 124.1 points in January to 125.5 in February, 128.7 in March, and 131.0 in both April and May. In June, it fell 0.3% from the previous month to 131.1 points as grain, dairy and sugar prices weakened, but it has now turned upward again after just one month.
Among the categories, sugar posted the sharpest increase. It rose 5.6% from the previous month to 95.0 points, although it was still 8.0% lower than a year earlier.
The grain price index climbed 3.4% from the previous month to 113.8 points. It was also up 6.9% from the same month last year. Vegetable oils rose 2.0% in a month to 195.7 points, and were 17.3% higher than a year earlier.
By contrast, meat and dairy prices fell. The meat price index dropped 2.8% from the previous month to 127.7 points, while dairy fell 0.7% to 116.2 points. Dairy prices were particularly notable, as they were 24.8% lower than a year earlier.
Meanwhile, domestic agricultural and livestock prices remained relatively stable. Consumer prices for agricultural and livestock products in July rose 0.5% from a year earlier, below the overall consumer inflation rate of 2.8%.
"We will strengthen monitoring of supply and demand conditions for each item and make every effort to manage supply and demand proactively in preparation for disruptions caused by summer weather conditions such as heat waves and droughts," MAFRA said.
[email protected] Kim Hyun-ji Reporter