In March, the United Nations Food and Agriculture Organization’s global price index dropped for the 12th month in a row, and it is now down 20.5% from its record high one year ago, when it was set in response to Russia’s invasion of Ukraine.
According to the Food and Agriculture Organization (FAO), the average price of the most widely traded food items dropped to 126.9 in March from 129.7 in February. The reading was the lowest since July of 2021.
According to FAO, the decline was caused by a number of factors, including an abundance of supply, a decrease in import demand, and the prolongation of a pact allowing the safe transit of Ukrainian grain over the Black Sea. The decline in the index, according to the Rome-based agency, reflected lower prices for cereals, vegetable oils, and dairy products, which countered increases in sugar and meat prices.
The dairy index was down 0.8%, while the vegetable oil index declined 3.0%, representing a 47.7% decrease from the level the index reached in March 2022.
Sugar, on the other hand, increased by 1.5% to its highest level since October 2016 on fears that output in India, Thailand, and China would continue to fall. Meat saw a 0.8% increase in the price index.
