The FAO Food Price Index* (FFPI) averaged 140.9 points in July 2022, down 13.3 points (8.6 percent) from June, marking the fourth consecutive monthly decline. Nevertheless, it remained 16.4 points (13.1 percent) above its value in the corresponding month last year. The July decline was the steepest monthly fall in the value of the index since October 2008, led by significant drops in vegetable oil and cereal indices, while those of sugar, dairy and meat also fell but to a lesser extent.
While food price inflation and food insecurity remain major problems for countries around the world (e.g., Sri Lanka, Panama, Peru), here we have one metric suggesting that global food price inflation, while still high and still a problem, may have peaked.
I'm curious. Is some of that demand destruction, like it is with fuel? I've noticed at our local grocery store that a lot more stuff is going clearance because nobody is buying it, and I live in a pretty high income retirement area.
The FAO Food Price Index is a global index. It amalgamates food prices from around the world.
The decline more likely indicates a moderation of various supply side issues (e.g., the resumption of some grain shipments from Ukraine and Russia) than the impacts of demand destruction vis-a-vis Fed interest rate hikes or other anti-inflationary measures.
Ostensibly, if food supplies increase, if food availability improves, the need for demand destruction to contain food prices should ultimately decline.
I'm curious. Is some of that demand destruction, like it is with fuel? I've noticed at our local grocery store that a lot more stuff is going clearance because nobody is buying it, and I live in a pretty high income retirement area.
The FAO Food Price Index is a global index. It amalgamates food prices from around the world.
The decline more likely indicates a moderation of various supply side issues (e.g., the resumption of some grain shipments from Ukraine and Russia) than the impacts of demand destruction vis-a-vis Fed interest rate hikes or other anti-inflationary measures.
Ostensibly, if food supplies increase, if food availability improves, the need for demand destruction to contain food prices should ultimately decline.