Global Food Prices Hit Three-year High

According to the United Nations Food and Agriculture Organization, Global food prices reached a three-year high in July.  The FAO Food Price Index in July increased 2.3% from June, averaged 179.1 points in July 2017, up 2.3% from June and the third successive month of increases.The report said a combination of supply constraints and currency movements provided support to prices of most cereals, sugar and dairy.

Instead, meat values remained steady month-on-month, whereas the Vegetable Oil Index edged down.  The latest rise put the Index nearly 10.2% above last year's level and at its highest since January 2015.

The Cereal Price Index averaged 162.2 points in July, up almost eight points from June. The Vegetable Oil Price Index averaged 160.4 points in July, down 1.8 points from June and marking the lowest level since August 2016. The Dairy Price Index averaged 216.6 points in July, up 7.6 points from June and 74.3 points, or 52%, above its value in July 2016. Despite this latest increase, the Index is still 21% below its peak reached in February 2014. The Meat Price Index averaged 175.1 points in July, virtually unchanged from June, and the Sugar Price Index averaged 207.5 points in July.

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