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World Food Prices Drop For Fifth Month in a Row in August

Bloomberg writer Agnieszka de Sousa reported today that, “Global food prices fell for a fifth month after demand for some products weakened and there was a seasonal uptick in supplies.

“World Food Prices Extend Drop as Supply Uptick Offers Relief,” by Agnieszka de Sousa. Bloomberg News (September 2, 2022).

“Wheat harvests in the northern hemisphere are helping ease supply constraints, while more grain trickles out of ports in Ukraine. A United Nations index of world food costs dropped 1.9% in August from the previous month, data showed Friday. The index remained at the lowest level since January.

“Falling prices may offer some relief to consumers as they grapple with a deepening cost-of-living crisis. Still, the declines are not as sharp as in July when food prices plunged the most since 2008, and remain higher than a year ago. Food inflation shows no signs of easing in many nations, with higher energy prices likely to boost processing costs. Harvests may shrink in the long term as farmers curb fertilizer use.”

The Bloomberg article also noted that, “The FAO lowered its 2022 grain forecast by 1.4% as heat waves led to plummeting corn yields in the European Union.”

Also today, Reuters writer Gus Trompiz reported that, “The United Nations food agency’s world price index fell for a fifth month in a row in August, further from all-time highs hit earlier this year, as a resumption of grain exports from Ukrainian ports contributed to improved supply prospects.”

“The Food and Agriculture Organization (FAO) said on Friday that its price index, which tracks the most globally traded food commodities, averaged 138.0 points last month versus a revised 140.7 for July.

“The July figure was previously put at 140.9.”

And Dow Jones writer Yusuf Khan reported today that, “The FAO’s food-price index, a closely watched barometer of global food prices, averaged 138 points in August, down 1.9% from the previous month but still 7.9% above the level seen last year.”

Keith Good Photo

Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.

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