Food prices on the international market fell in September

The Food and Agriculture Organization of the United Nations (FAO) food price index, which reflects the price developments of five groups of cereals, meat, dairy products, vegetable fats, and sugar on the world market, fell in September to its lowest level in three months, the organization said on Friday.

The food price index, which stood at 129.7 points in August as revised, fell 0.7 per cent to 128.8 points in September. 

The Grain Price Index declined for the fifth consecutive month and reached its lowest level since September 2020. Among other things, global wheat prices declined, largely due to sluggish international demand and the confirmation of bumper harvests in Russia and other major wheat-producing countries in Europe and North America. 

The Sugar Price Index fell 4.1% to its lowest level since March 2021, driven primarily by higher-than-expected sugar production in Brazil. 

The vegetable oil price index slipped by 1.2%, mainly due to lower palm and soybean oil prices, which offset increases in the prices of sunflower and rapeseed oil. 

The Dairy Price Index fell by 2.6%, marking the third consecutive month of decline. Butter prices fell by 7%, skimmed milk powder by 4.3% and whole milk powder by 3.1%. 

Meanwhile, the meat price index rose by 0.7 per cent to a new record high, driven by higher global beef and sheepmeat prices. 

The FAO Food Price Index reflects price developments in the international market, but these only partially affect prices in shops and can take time to be felt, depending on fair competition between traders and the administrative application of price controls.