For the second month in a row, global food prices continue to increase, particularly for vegetable oils and dairy products. This is according to the July 2020 report of the Food and Agriculture Organization of the United Nations' Food Price Index, which tracks international prices of most commonly traded food commodities.
The report indicates that the vegetable oil price index increased by 7.6% since June, attaining a five-month high. This is amidst production slowdowns, revived global import demand, and protracted migrant labor shortages, particularly for palm oil. The dairy price index rose by 3.5%, indicating rising prices for all dairy including butter, cheese, and milk powders. On the other hand, cereal prices were practically unchanged from the previous month. Rice prices fell, indicating prospects of large 2020 harvests. Meat prices declined by 1.8%, while sugar prices increased by 1.4%.