FAO Reports 1.6 Percent Monthly Increase In Food Price Index Led By Vegetable Oils

Index rises 1.6% month-on-month

The FAO Food Price Index averaged 130.1 points in July, a 1.6% increase from June. Despite the monthly rise, the index remains 18.8% below its March 2022 peak but is still 7.6% higher than it was in July 2024.

The index reflects monthly changes in the international prices of globally traded food commodities.

Vegetable oils see sharp increase

The vegetable oil price index rose by 7.1% to 166.8 points, reaching a three-year high. This was attributed to stronger global demand and higher prices for palm, soy, and sunflower oils.

Palm oil prices rose on robust demand and improved competitiveness, while soy oil was supported by expectations of firm biofuel demand in the Americas. Sunflower oil prices also increased due to tightening Black Sea exports. Rapeseed oil, however, declined with the arrival of new crop supplies in Europe.

Meat prices hit new record

The meat price index climbed 1.2% to an all-time high of 127.3 points, led by higher prices for bovine and ovine meat, with strong import demand from China and the United States.

Poultry prices also edged up following resumed imports from major trading partners after Brazil regained its avian influenza-free status. Pig meat prices, in contrast, declined due to ample supply and lower demand, especially in the European Union.

Cereals, dairy and sugar indices decline

The cereal price index dropped by 0.8% to 106.5 points. While maize and barley prices rose, declines in wheat and sorghum prices pulled the index down.

Fresh seasonal wheat harvests in the northern hemisphere added downward pressure, despite support from concerns over spring wheat conditions in parts of North America.

The all rice price index also fell by 1.8%, driven by ample export availability and muted import demand.

The dairy price index edged down 0.1% to 155.3 points — its first drop since April 2024. Lower prices for butter and milk powders reflected strong export supply and weak demand, especially from Asian markets.

Cheese prices, however, continued to rise due to tight supply in the EU and steady demand in Asia and the Near East.

The sugar price index declined for the fifth consecutive month, falling 0.2% to 103.3 points. Expectations of a global production rebound in the 2025/26 season — particularly in Brazil, India, and Thailand — exerted downward pressure, though signs of recovering import demand helped moderate the decline.