Global food prices have been on an upward trend, marking the third consecutive month of increase in May. According to a report from the United Nations Food and Agriculture Organization (FAO), this phenomenon is largely attributed to the rising cost of grains and dairy products.
The FAO’s Food Price Index, which tracks the international prices of grains, vegetable oils, dairy products, meat, and sugar, increased 0.9% monthly in May. However, the index decreased by 3.4% compared to the previous year.
Interestingly, the index was almost 25% below its record peak reached in March 2022, a result of the onset of Russia’s military invasion of Ukraine. The geopolitical tensions have notably impacted global food prices, particularly affecting the cost of grains.
Grains saw a significant monthly price increase of 6.3%, mainly due to rising export prices of wheat amidst growing concerns about harvests in key regions. Dairy products also became more expensive in May, with their prices increasing by 1.8%, according to the FAO report.
On the other hand, sugar prices fell by 7.5%, primarily due to the favorable start of the new harvest season in Brazil. According to FAO data, vegetable oils also became cheaper, with a 2.4% decrease in prices, while meat prices only dropped slightly by 0.2%.
The continuous fluctuation in food prices globally creates a ripple effect on consumers’ wallets. As we navigate these changes, staying informed and understanding the larger forces affecting our daily cost of living is crucial.