The FAO’s Food Price Index (FPI) for August came out yesterday showing the fifth straight drop in prices. Nevertheless, the figures still stand 7.9% above what they were a year ago.
- Cereals: down 1.4%, up 11.4% YoY
- Oils: down 3.3%, flat YoY
- Dairy: down 2%, up 23.5% YoY
- Meat: down 1.5%, up 8.2% YoY
- Sugar: down 2.1%, flat YoY
Overall, prices have dropped from weaker demand, although it cannot be overstated how beneficial it was that the Black Sea ports opened, a move that helped bring down both cereal and oil prices. Moreover, it would seem that the efforts of the Fed have finally started to bear fruit, as people pulled back spending amid higher interest rates.