Global Food Price Index Hits Two-Year High as Vegetable Oil and Meat Prices Surge

Up 1.6% from the Previous Month

The global food price index has reached its highest level in two years and five months. The price of vegetable oils surged, while meat prices hit an all-time high. However, prices of cereals, dairy products, and sugar declined.

The Ministry of Agriculture, Food and Rural Affairs announced on the 9th that the global food price index for the previous month, as published by the Food and Agriculture Organization (FAO) of the United Nations, stood at 130.1 points. This is based on the 2014?2016 average price set at 100, and represents a 1.6% increase compared to the previous month (128.0).

Last month's global food price index is the highest since February 2023. However, it remains 18.8% lower than the peak reached in March 2022, following Russia's attack on Ukraine.

The meat price index rose by 1.2% from the previous month to 126.3 points, setting a new all-time high. Beef prices increased due to rising demand in China and the United States. Chicken prices also rose as Brazil regained its highly pathogenic avian influenza (HPAI) free status in June, leading major trading partners to resume imports. In contrast, pork prices fell, affected by sufficient supply and decreased demand.

The vegetable oil price index jumped 7.1% from the previous month to 166.8 points, reaching its highest level in three years. Prices of palm oil, soybean oil, and sunflower oil increased due to higher demand, while rapeseed oil prices declined. The cereal price index fell by 0.8% to 106.5 points, marking its lowest level in nearly five years.

The dairy price index, at 155.3 points, remains high but declined for the first time since April last year, dropping by 0.1% from the previous month. The sugar price index (103.3) fell for the fifth consecutive month, as production in India and Brazil is expected to increase.