Record high meat prices drive Food Price Index up in July

The FAO Food Price Index rose by 1.6 percent in July based on increasing meat and vegetable oil prices. The Index remains 7.6 percent higher than its 2024 level but nearly 19 percent below its March 2022 peak.

The Cereal Price Index declined by nearly 1 percent in June and nearly 4 percent from July 2024. Wheat prices fell based on good seasonal supplies in the northern hemisphere, although declining crop conditions in some parts of North America and slow sales in Europe limited the decrease. Maize prices increased slightly overall, but the rise was slowed by slow sales and dry conditions in eastern Europe and lower crops available export from Argentina and Brazil. Rice prices declined by 1.8 percent due to strong supplies and slowing import demand.

The Vegetable Oil Price Index rose 7.1 percent in July to reach a three-year high. Palm oil prices increased based on strong import demand, while soy prices rose based on increasing demand from the biofuel sector.

The Meat Price Index rose 1.2 in July to reach a record high of 127.3 points. The Dairy and Sugar Price Indices both declined marginally in July.

Sara Gustafson is a freelance writer and communications consultant.