The food price index calculated by the Food and Agriculture Organization of the United Nations (FAO), which tracks the variation in international prices of a basket of basic products, fell by 0 .7% in February compared to January.
This is the seventh consecutive month that prices have been driven down.
In total over one year, this index fell by 10.5%.
The main reason is the spectacular fall in the cereal price index.
Minus 5% compared to January and minus 22% year-on-year.
“Corn export prices saw the biggest drop, forecasts of bountiful harvests in Argentina and Brazil, as well as competitive prices offered by Ukraine, eager to take advantage of the smooth functioning of the maritime trade route, weighed on the market,” underlines the FAO in its monthly report.
As for wheat, the drop in prices is linked to “the sustained pace of exports from Russia which has exerted downward pressure on prices from other origins, in particular from the European Union”, underlines the organization.
Meat prices started to rise again by 1.8%
Other products are also affected such as barley, sorghum and rice.
Likewise, the vegetable oil price index fell by 1.3%, with a marked decline in soybean oil prices in view of abundant harvests in South America.
Conversely, meat prices started to rise again by 1.8% after seven consecutive months of decline.
Similarly, poultry prices were driven up by renewed demand from several major importing countries, while beef prices rose on lower supplies in Australia, where heavy rain disrupted transport of livestock.
Pork prices were at the same time supported by strong demand in China and limited supply in Western Europe.
It now remains to be seen whether these reductions will be found on supermarket shelves?
At the end of commercial negotiations in January between distributors and manufacturers, certain prices were announced to fall, notably for wheat, oils, poultry and even coffee.
But overall, the increase in food products is expected to be around 2 to 3% this year.