Food prices settle at record highs

Still no significant drop in sight for the bill at the supermarket. After jumping to an all-time high in March, the Food and Agriculture Organization of the United Nations (FAO) food price index barely retreated in April. It fell 0.8% to 158.5 points. It is trading almost 30% above the levels seen last year at the same time and still well above the 2011 record which has prevailed until now.

The FAO indicates that this slight drop in April is due to vegetable oils and to a lesser extent to cereals. International palm oil prices lost ground “mainly due to weak global imports due to high costs, as well as a weaker outlook for demand in China”, explains the agency based on in Rome. However, this trend should be reversed with the implementation of an export embargo in Indonesia, the leading producer and exporter of palm oil.

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