Global Food Prices Plummet 13.7% in 2023, UN Report Reveals
- Katsina City News
- 05 Jan, 2024
- 456
In a recent update, the UN’s Food and Agriculture Organization (FAO) announced a substantial 13.7% drop in global food prices for the year 2023. Noteworthy decreases in grain and oil prices were observed as concerns over supply alleviated.
The FAO's cereals price index experienced a significant 15.4% decline, reflecting well-supplied global markets in contrast to the preceding year. This contrasted with 2022, where prices soared following Russia's invasion of Ukraine, a major grain exporter.
Wheat and maize saw eased supply concerns, contributing to the overall drop in prices. However, rice faced increased challenges due to the El Nino weather phenomenon and India's export restrictions, resulting in a 21% spike in rice prices.
The vegetable oil price index registered the most substantial decrease, plummeting by 32.7%, attributed to improved supplies and reduced demand for biofuel production.
In contrast, sugar prices experienced a 26.7% surge throughout the year, although they retreated from December highs. This shift was credited to Brazil's increased exports and diminished biofuel usage.
Despite the FAO's overall index indicating a decline, consumer food prices in numerous countries are witnessing a significant rise, often outpacing the general inflation rate. It's essential to note that the FAO's index measures commodity market prices, with a certain delay on consumer prices, which are influenced by energy and labor costs during processing and distribution.
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