Global food prices rise after one year and drive inflation risk
By Megan Durisin and Mumbi Gitau
Higher sugar prices, caused by unfavorable weather conditions and limited fieldwork in parts of Asia and South America, offset a drop in grains and dairy products, leading to a 0.6% increase in the United Nations food commodity price index in April.
The UN gauge, down 20% from a record high a year ago, rebounded for the first time in a year, stoking concerns about food inflation.
Grocery prices remain historically high in many regions, exacerbating the hunger crisis and weighing consumer budgets.
However, food inflation has recently slowed in Kenya, Germany, and Australia.
On the other hand, the El Niño phenomenon threatens to reduce food supplies further.
Growing conditions for Northern Hemisphere crops and talks on expanding a crucial corridor for Black Sea crops will be key in determining price developments.
The grain deal was first agreed upon in July and has boosted wheat, corn, and sunflower oil flows from war-torn Ukraine, but Russia has threatened to pull out this month if problems regarding its own grain and fertilizer shipments are not resolved.
Vegetable oil prices fell in April, the United Nations Food and Agriculture Organization reported Friday.
Meat costs rose as avian flu outbreaks curbed poultry supplies and high production costs weighed on pork production.
The UN food index fell last year, partly because of bumper harvests.
But consumers have seen supermarket prices rise just as much because of higher energy, labor, transportation, and processing costs.
With information from Bloomberg
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