International food prices stabilise in August

The Food and Agriculture Organization of the United Nations (FAO) food price index, which reflects price developments in five groups of cereals, meat, dairy products, vegetable fats, and sugar on the world market, was virtually unchanged in the past month compared with the previous month, the FAO said on Friday.

Food prices on the international market have risen by an average of 6.9 per cent over the past year (last month, compared to August last year), but have fallen by 18.8 per cent since March 2022, when prices were at an all-time high following the start of Russia's invasion of the world's agricultural powerhouse, Ukraine.

The price index for vegetable oil rose by 1.4 per cent over the month to its highest level in more than three years.

Wheat fell by an average of 0.8 per cent, mainly due to a fall in wheat prices amid good harvests in the European Union and Russia.

The Meat Price Index increased by 0.6% in August to reach a long-standing high. This was driven by rising beef and sheepmeat prices. Pork prices remained almost stable, while poultry meat prices declined.

Dairy products fell by an average of 1.3%, with butter, cheese and whole milk powder prices weakening.

Sugar prices were little changed last month, rising by 0.2% after falling in the previous five months.

The FAO Food Price Index reflects price changes 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.