The Strategist

Global food prices fall by record 14.6% in 6 consecutive months

10/10/2022 - 10:45

Food costs have been falling globally for six months running.

In September, the FAO (Food and Agriculture Organization of the United Nations) food price index in U.S. dollars decreased 1.1% from the previous month and 5.5% from the previous year (as opposed to a decrease of 1.9% and 7.7% in August). According to the FAO index's most recent publication, the decline in the past six months has been an all-time low at 14.6%.

The index has been falling for the sixth straight month, according to the index, making this greatest stretch of decreases since the year began.

The FAO attributed the rise to the unpredictability of the Black Sea Grain Initiative's continuation after November and its potential effects on Ukrainian exports, worries about Argentina's and the United States' lack of rain, and export dynamics from the European Union, which has increased its purchases of wheat on global markets as a result of tensions with corn. Prices for vegetable oil decreased 6.6% month over month.

Prices for sugar were down 0.7%, meat costs were down 0.5%, and dairy prices were down 0.6% (although they are still 20.7% higher than they were a year ago, at their lowest level since July 2021).