World Food Price Index rebounds in July 2023—FAO

World Food Price Index rebounds in July 2023—FAO

THE United Nation Food Agency’s World Price Index rebounded in July from its 2-year low as vegetable oil Markey’s increased on renewed tensions over exports from Ukraine and global production concerns.

The Food and Agriculture Organization’s (FAO) price index tracks the most globally-traded food commodities.

And on Friday, the organization said the index averaged 123.9 points in July, up 1.3% from the previous month, and 11.8% below its July 2022 level.

The June reading was initially 122.3.

According to FAO, the increase was driven by a sharp jump in the FAO vegetable oil price index, which rose 12.1% from June after seven months of consecutive declines.

International sunflower oil prices rebounded by more than 15% in the month.

World prices for palm, soy, and rapeseed oils increased on concerns over output prospects in leading producing countries.

The price of rice rose 2.8% from the previous month and 19.7% year on year to a record high since September 2011.

The FAO all rice price index increased by 2.8% in July and 19.7% in the year to reach its highest nominal level since September 2011.

FAO warned this upward pressure on rice prices raises substantial food security concerns for a large swathe of the world population, especially those who are the poorest and have to dedicate a larger share of their incomes to buying food.

The organization also warned that export restrictions can bear adverse consequences on production, consumption and prices that last beyond the duration of their implementation and risk exacerbating high food domestic inflation in various countries.

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