Global food prices rose by 1.8% in January, according to FAO. The increase was due to a “sharp rebound in dairy price quotations and firmer prices of palm and soy oils.”
Cereal prices rose marginally, mostly due to “tightening export supplies and robust world demand.” Oil price went down 4.3% since December, especially palm oil. The reason? “Seasonal production decline in the major producing countries.”
The cost of dairy increased by 7.2%, surpassing seven months of falling prices. This was due to limited export supplies from Europe (brought about by strong internal demand) and seasonal reduction of export availability from Oceania.
Sugar prices went up 1.3%, which was mostly caused by the appreciation of Brazil’s currency (the Real) against the U.S. Dollar. Brazil is the largest world exporter of sugar. As for meat prices, little change was registered – although FAO couldn’t consider data from the U.S, due to the Government shutdown.
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