UN reports rise in food prices in July

World food prices rose in July, including against the backdrop of the "grain deal" termination, the Food and Agriculture Organization of the United Nations (FAO) said, Report informs via TASS.

The FAO Food Price Index, which reflects monthly changes in international prices for staple foods, stood at 123.9 in July, up 1.3% from the previous month but 11.8% below July 2022 levels.

The increase recorded in July was driven by a sharp increase in the vegetable oil price index, which was partly offset by a significant drop in the sugar price index and a slight decrease in the price indices for cereals, dairy products and meat.

Thus, the price index for vegetable oil rose by 14 points, or by 12.1%, compared to June, to 129.8 points. Such significant growth is explained by the increase in world quotations of sunflower, palm, soybean and rapeseed oils. The grain price index, in turn, fell by 2.1%, or 2.7 points, to 126.6 points, and the FAO attributed this to the decline in prices for all major cereals. Thus, corn and wheat fell in price due to good harvest prospects.