With the advent of the new year, the prices of food commodities continued to decline on global trading screens, from vegetable oils to coffee, sugar and milk.
Despite continued supply constraints, the price decline comes amid fears that the economic recession will hurt demand, which gives some relief to consumers around the world who are suffering from rising inflation.
And caused a jump in the cost of most primary food commodities last year, as a result of fears of food shortages following the Russian-Ukrainian war, in raising the price index issued by the United Nations Food Agency to its highest levels ever.
According to the monitoring unit of the reports in Al-Eqtisadiah newspaper, the prices of the main food commodities, “eight commodities”, have clearly declined from their highest levels during the past year, by rates ranging between approximately 7 and 51 percent for some of them.
Sunflower oil prices recorded the largest decline from last year’s peak prices among a group of major food commodities under monitoring, after declining 51 percent, then palm oil and wheat, with declines of 46 and 43 percent.
The Black Sea Grain Initiative, which was concluded last July and was extended in November for a period of 120 days, supported the decline in prices, especially related to grain crops.
Coffee prices also fell 40 percent from their peak, as a result of the increase in supply, after the beginning of last year witnessed a decline in stocks, at the same time that Brazil witnessed a major drought, which led to a rise in prices to record levels.
Domestically, food prices are still at their highest level, as the prices of vegetable oils are still 20 percent higher than at the beginning of last year, while the prices of eggs have increased by 33 percent.
In addition, the numbers were reflected in the International Monetary Fund’s food index, as well as the FAO index, with declines of 15 and 17 percent from last year’s peak.
However, slight increases in the prices of sugar, dairy products, and rice limited the declines, keeping the record recorded last December at 5 percent higher than in 2021.
Economic Reports Unit