FAO: Global food prices inch up in April

Global food prices rose in April, with the FAO Food Price Index (FFPI) averaging 128.3 points, up 1.0 per cent from March, as increases in cereal, dairy, and meat prices outweighed declines in sugar and vegetable oils.

According to the UN Food and Agriculture Organisation, the index was 7.6 per cent higher year-on-year but remained nearly 20 per cent below its March 2022 peak.

Cereal prices rose 1.2 per cent month-on-month, driven by gains in wheat and maize amid tighter exportable supplies and currency fluctuations, including a weaker US dollar. Rice prices also inched up due to firm demand and reduced availability in Viet Nam.

The meat price index climbed 3.2 per cent, with prices rising across all categories. Bovine, ovine, and poultry prices strengthened, particularly in Brazil and Australia, amid robust import demand and limited global supplies.

Dairy prices increased by 2.4 per cent, with butter reaching a new record high on strong demand and shrinking inventories in Europe. Milk powder and cheese prices also rose, supported by lower production in Oceania and firm international demand.

In contrast, the sugar price index fell 3.5 per cent, marking a second consecutive monthly drop, weighed down by strong output in Brazil, a weaker real currency, and lower global crude oil prices. Vegetable oil prices declined 2.3 per cent, led by palm oil as export supplies recovered.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama