On the rise for the third month in a row, the Food Price Index is now the highest since January 2015, says the UN Food and Agriculture Organization. The latest increase in the index is due to higher prices for cereal grains, sugar and dairy. In early 2015, prices were declining from the peak in 2011, when drought affected global food supplies.
“Wheat values rose the most in July, as continued hot and dry weather conditions hampered spring wheat conditions in North America while seasonal tightness pushed up rice prices,” said FAO. The cereal price index is up by 5.1 percent in a month and “has been rising consistently over the past three months.”
Sugar prices rose by 5.1 percent, the first increase of the year, driven by the higher value of the Brazilian real; Brazil is a leading sugar exporter. Stronger prices for butter, cheese and milk powder push up the dairy index by 3.6 percent, said FAO. Meat prices were steady and vegetable oil prices fell modestly.
The overall index is nearly 10 percent higher than a year ago, said FAO.