The UN’s Food and Agriculture Organization (FAO) uses its Food Price Index (FPI) to measure monthly changes in global prices of food commodities, such as cereals, dairy, and meats. According to the FAO, its Food Price Monitoring and Analysis (FPMA) Tool can help identify “market imbalances” that might lead to increased food insecurity.
August’s FPI declined to 121.4 points from a revised 124.0 for the previous month.
This decline reversed a rebound in prices in July, sending the index 24% below its peak in March 2022.
The overall drop in prices was due to declines in the price indices for dairy products, vegetable oils, meats, and cereals. In contrast, the sugar price index “increased moderately.”
The FAO Cereal Price Index for August stood at 14.1% below its value a year ago.
The FAO Dairy Price Index was down for the eighth consecutive month in August, 22.4% below its value last year. Global dairy price declines were led by declines in whole milk powder prices.
However, the FAO Sugar Price Index in August was up by 34.1% from a year ago. The increase was mostly triggered by concerns over the impact of El Niño-related weather on global production.
The FAO Meat Price Index in August was down by 5.4% from its value a year ago. All global meat types fell in August, led by ovine (sheep) meat, due mostly to a surge in Australian exports and weaker demand from China.