Walid Battal
The Food Price Index represents an accurate assessment of the monthly variation in international prices of a basket of basic food commodities. These consumer goods are the same foodstuffs typically consumed daily by households worldwide: flour, milk, coffee, cocoa, sugar, oil, cereals, etc.
Regular monitoring of this index helps to understand the implications of price increases or decreases and, consequently, other indices such as consumer prices, export/import prices, and also purchasing power or the cost of living.
In June, the index of the most traded food products globally stagnated, reaching only 120.6 points compared to 120.4 points in 2023. According to FAO, the 3% decrease in cereal prices, following positive export prospects in Ukraine and Kazakhstan, helped to offset the 3.1% increase in oilseed prices, including palm, soybean, and sunflower oils.
According to the UN organization, the prices of dairy products and sugar also saw respective increases of 1.2% and 1.9%, while the prices of meat products (beef, poultry, pork, etc.) remained stable.
More broadly, according to FAO, global cereal production is expected to reach 2.854 billion tonnes in 2024-2025, a new record for the sector. The stagnation of this Food Price Index is thus good news globally, as the public has been concerned about the consequences of the ongoing Russo-Ukrainian war since 2022.