World food prices rise for the first time in a year

For the first time in a year, world food prices rebounded slightly in April, driven by an increase in the prices of sugar, meat, and rice, the United Nations Food and Agriculture Organization reported this Friday (05.05.2023). Agriculture and Food (FAO), based on the food price index kept by the same entity.

The formula, which tracks the monthly variations in international prices of a basket of basic food products, determined an increase of 0.6 percent compared to its level in March, reaching 127.2 points. Although it is well below its level of a year ago (-19.7 percent), it continues to hold at a high level.

This, since it remains 5.2 percent above its level in April 2021, according to a statement from the FAO. This is largely due to the 17.6 percent increase in sugar prices, which reached its highest level since October 2011, due to “lowering production expectations and results in India, China, Thailand and the European Union caused by dry weather conditions”.

Slight drop in cereals

Meat prices also rose, 1.3 percent, driven by rising pork prices, followed by poultry prices, “which rose amid Asian import demand and trade restrictions.” production spurred by animal health problems.” Rice also showed an increase, albeit marginal, due to an increase in the price of inputs and adverse weather conditions.

Meanwhile, prices of other large categories of food products continued their downward trend, with special emphasis on those of cereals, which fell by 1.7 percent compared to March and stood at an average of 19.8 percent per below its April 2022 value.

“It is important to continue to closely monitor the evolution of prices and the factors of increases: as economies recover from a significant recession, demand will increase and exert upward pressure on prices,” stressed Máximo Torero, economist FAO chief, in a statement.