L‘FAO Food Price Index increased by 0.3 points (0.3%) in April 2024 compared to its revised value in March. Should we expect repercussions on the national market and on the French consumer?
The Food and Agriculture Organization of the United Nations (UN) indicated, Friday, May 3, in its latest periodic publication, that the benchmark index of world food prices (FAO) was up slightly in April. The index averaged 119.1 points in the fourth month of 2024, an increase of 0.3 points (0.3%) compared to its revised value for the month of March.
This is the result “an increase in meat price indices and a rebound in those of vegetable oils and cereals” who has a little “more than offset a drop in sugar and dairy indices”, explains the organization. Despite a “second monthly rebound in April, after seven months of downward trend, the index was still down 9.6 points (7.4 percent) compared to its value last year in the same month”the publication notes.
In detail, the organization mentions that the FAO cereal price index recorded an average value of 111.2 points in April, a small increase of 0.3% compared to the month of March, synonymous with stability after three consecutive months of decline. In the same sector, corn export prices increased in April. Just like other coarse grains, including barley, at a time when those of sorghum have declined. The FAO price index for all types of rice fell 1.8 percent.
What are the repercussions on the French consumer?
In the oils sector, the FAO vegetable oil price index gained 0.3% compared to the previous month. It occasionally reaches its highest level in 13 months. Conversely, the FAO Dairy Price Index, which averaged 123.7 points in April, fell slightly by 0.3% compared to March, after six consecutive months of increases.
The FAO meat price index, for its part, recorded an increase of 1.6% more than in March. This is the third consecutive monthly increase in the index. In contrast, the FAO sugar price index fell 4.4% than in March, marking the second consecutive monthly decline.
In light of these figures, specialists are far from alarmed, the increases recorded being of lesser magnitude. However, repercussions on local markets, including French, have not been completely ruled out. Everything will depend on France’s ability to limit the increase in imported products through measures aimed at protecting consumers from direct repercussions, according to experts. The latter also underline the importance of controlling the way in which these increases in imported products influence the prices of local products.
