By Giulia Petroni
Food prices climbed to a 19-month high in November driven by vegetable oils, data from the Food and Agriculture Organization of the United Nations showed on Friday.
The FAO's food price index, which tracks global prices for a basket of staple foods, averaged 127.5 points in November, a 0.5% increase from October's level and 5.7% higher than a year earlier. The index stands at its highest level since April 2023, but is still significantly below the record reached in March 2022 after Russia's invasion of Ukraine.
Vegetable-oil prices jumped 7.5% from the previous month--the sharpest rise since July 2022--fueled by higher quotations for palm, rapeseed, soy and sunflower oils. Dairy prices edged up 0.6%, boosted by a rebound in demand for milk powders and higher prices for butter and cheese.
Cereal prices instead fell 2.7% in November, according to the U.N. body. Global wheat prices declined due to increased supplies and improved crop conditions in some major exporting countries. While maize prices remained stable, as generally favorable weather in South America balanced out strong demand in Brazil and Mexico.
Meat prices dipped 0.8% on month but were up 5.9% from a year earlier. Lower pig-meat prices due to ample supplies and subdued demand were the main drivers of the decline, although ovine and poultry meat also saw slight decreases.
After two consecutive monthly increases, sugar prices fell 2.4% from October and 21.7% on-year mainly due to the start of the cane-crushing season in India and Thailand, as well as easing concerns over crop prospects in Brazil. A weaker Brazilian real against the U.S. dollar and lower crude prices also contributed to the fall, the FAO said.
Write to Giulia Petroni at giulia.petroni@wsj.co
(END) Dow Jones Newswires
12-06-24 0509ET
