The Food and Agriculture Organization of the United Nations shared today that its price index, which tracks globally traded food commodities, increased by a 0.6-points in April compared to the month prior. High prices of sugar, meat, and rice likely affected this increase.
"As economies recover from significant slowdowns, demand will increase, exerting upward pressure on food prices," said FAO Chief Economist Maximo Torero in a statement.
This is the first time the price index has risen in a year. Despite the increase, it is still 19.7 percent below the April 2022 record high that followed Russia’s war in Ukraine. But the war still threatens the global food supply chain.
Torero also shared his concern, adding: “At the same time, the increase in rice prices is extremely worrisome and it is essential that the Black Sea initiative is renewed to avoid any other spikes in wheat and maize.” The initiative is a trade agreement between Russia and Ukraine to continue to allow ships to export grain and certain foodstuffs out of Ukraine.
The FAO Sugar Price Index rose 17.6 percent in April from March, resulting from reduced crop production in India, China, Thailand, and the EU. A slow start to the harvest in Brazil also contributed to the inflated value. The Meat index rose by 1.3 percent during the month. For every other commodity other than rice, however, the indices continued to fall. Cereal and dairy, for example, both dipped 1.7 percent in April compared to March, and oil by 1.3 percent.
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