Falling global food prices paves the way for a brake on inflation (El Pais)
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El Pais (Spain) in an extensive report writes the FAO index falls for the tenth consecutive month, but experts warn that cereals, meat, dairy, oils, and sugar remain at very high levels. Prices are still very high. The FAO index, after rising during the first months after the start of the conflict in Ukraine, is now at pre-war levels, but “still remains well above previous years”, including cereals, meat, dairy, vegetable oils, and sugar, according to experts from the International Food Policy Research Institute. (IFPRI). In the case of vegetable oils, the price registered a 33 percent drop in the second half of 2022 but is still a third above pre-pandemic levels.
The authors of the report also point out that commodity reserves are generally very limited. Warehouses are at a low and “price volatility is likely to intensify in the event of further supply problems, especially given the uncertainty surrounding exports of grain stored in Ukraine for the duration of the war.”
Republished by MSN.