New York: Europe and the Arabs

The Food and Agriculture Organization of the United Nations (FAO) announced that its Food Price Index averaged 131.1 points in July, a 0.6 percent increase compared to June. The rise was driven by higher prices for cereals, sugar, and vegetable oils, despite lower prices for meat and dairy products.

According to the UN Daily News, a copy of which we received, the cereal price index rose by 3.4 percent, fueled by higher wheat prices amid concerns about disruptions to export flows in the Black Sea and damage to export infrastructure, as well as the impact of heat waves on crops in several major producing countries. Maize prices also rose by 3.6 percent.

The vegetable oil price index increased by 2 percent, reaching its highest level since June 2022, due to higher prices for palm and soybean oils. Conversely, the meat price index fell by 2.8 percent, and the dairy price index by 0.7 percent, while the sugar price index rose by 5.6 percent, influenced by concerns about the impact of hot and dry weather on crops.

According to media reports, the Food and Agriculture Organization of the United Nations (FAO) announced that global food prices rose in July to their highest level in more than three years, as adverse weather conditions and escalating conflicts in the Gulf and Black Sea regions contributed to higher crop prices.

The FAO's chief economist told Reuters this week that the world is facing another wave of food price inflation, with the wars in Iran and Ukraine, along with weather-related events, driving up costs and reducing crop yields. The escalating attacks by both Russia and Ukraine are raising concerns about supplies from the Black Sea region, a key grain-producing and exporting area, contributing to wheat prices reaching their highest level in two years last June.