Food prices rise worldwide in January
Upticks in sugar and cereal prices despite ample resulted in an increase in the Food and Agriculture Organization’s Food Price Index in January.
In a release, the FAO said its Food Price index rose to its highest level in almost two years, as FAO sugar price index surged by almost 10 percent and the FAO Cereal Price index jumped by 3.4 percent to a six-month high as wheat, maize and rice prices increased.
The FAO Food Price Index tracks international market for five major food group. While 2016 marked the fifth consecutive year that it has fallen, January marked its sixth consecutive monthly increase.
The FAO blamed expectations of a supply tightness in Brazil, India, and Thailand for the rise in sugar prices.
Unfavorable weather conditions and reduced plantings in the US affected wheat prices while strong demand and uncertain crop prospects in South America pushed up maize prices. Meanwhile, rice prices rose partly because of India’s policy that reduced quantities available for export.
The FAO vegetable oil price index inched up because of low inventory of palm oil and slow production recovery in Southeast Asia although soy oil prices eased on expectations of ample global availability.
The FAO dairy price index and the FAO meat price index were practically unchanged from December.