Global Food Prices Decline For The First Time In 12 Months: Report

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The fall in prices recorded in June reflects the decline in the rates of cereals, vegetable oils

The global food commodity prices fell in June for the first time in 12 months amid the COVID-19 crisis, according to a benchmark United Nations report released on Thursday, July 8. The decline last month marked the very first drop in the price index after recording 12 consecutive monthly hikes. The food and agriculture organisation (FAO) price index averaged 124.6 points in June, down 2.5 per cent from May 2021, yet 33.9 per cent higher than its level in the corresponding period last year, according to the UN report.

The food and agriculture organisation is a specialised agency of the United Nations which worked for defeating hunger and improving nutrition and food security on a global level. Its food price index tracks the alterations in the international rates of the most globally traded food commodities.

The fall in prices recorded in June 2021 reflects the decline in the rates of cereals, vegetable oils, and dairy products (moderately).

Going by the individual commodities, the FAO vegetable oil price index slipped 9.8 per cent in June, marking a four-month low, which reflects lower international prices of soy, palm, and sunflower oils.

The international wheat prices fell slightly by 0.8 per cent last month with a favourable global outlook supported by better production prospects, while the FAO dairy price index fell by one per cent to 119.9 points in June.

Additionally, the FAO meat price index rose by 2.1 per cent over the month to June, continuing the hike for the ninth consecutive month and placing the index about 15.6 per cent above its value in the corresponding month last year, according to the UN report.

Meanwhile, India’s retail inflation data for June is expected on Monday, July 12, and according to a recent poll conducted by news agency Reuters, the CPI inflation probably accelerated to a seven-month high, due to rising food and fuel prices.



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