Daily Outlook

Global food prices growth hits food security

Last Thursday, the Food and Agriculture Organization (FAO) of the United Nations reported global food prices rose for the third straight month in August, hitting their highest levels since February. The FAO Food Price Index tracks the international prices of the most commonly traded food commodities.

The rise in food prices was due to firmer demand and a weaker dollar, the FAO said. As commodities, including raw material for food, is usually denominated in the greenback, a weaker dollar lends support to prices. On Wednesday, China’s Bureau of Statistics said the country’s food prices rose 11.2% from a year ago in August on the back of high pork prices due to the African swine fever outbreak which has decimated China’s hog herds. In August, pork prices rose 52.6% from a year ago.

Hot and rainy weather in the country have also hit prices, with vegetable prices rising 6.4% from July. Egg prices rose 11.3% in the same period due to seasonal demand outpacing low inventory levels. Experts have said that while there is no pressing food shortage, farms have been roiled as the coronavirus pandemic upended supply chains and curbed movements. The World Bank in its post warned of disruption to supply ahead if farmers continue to have limited access to food.

Global food prices have been rising during the coronavirus pandemic, hitting food security, CNBC, Sep 9

Article Rating