Global Cereal Price Index Falls 4.1% from its June 2022 Peak

Economics & Macro

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Viva Budy Kusnandar 20/07/2022 16:50 WIB

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The cereal price index has shown an upward trend since the middle of last year.

FAO Cereal Price Index (January 1990 - June 2022)

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FAO Cereal Price Index (January 1990 - June 2022)

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Global cereal prices have fallen from their peak, driven by increased supply as harvests begin in various countries.

The Food and Agriculture Organization (FAO) reported that the average cereal price index fell 7.2 points (4.1%) to 166.3 in June 2022, down from its peak of 173.5 in May 2022. The cereal price index had been on an upward trend since the middle of last year, as shown in the graph.

Increased demand for food commodities has driven up prices of cereal commodities such as rice, wheat, and corn. This occurred alongside the easing of the Covid-19 pandemic and the improvement of the global economy.

Furthermore, the Russian invasion of Ukraine exacerbated the rise in global cereal prices. Ukraine is a major wheat exporter, and the war, which began on February 24, 2022, disrupted global wheat supplies.

This situation has caused hardship for people in countries that rely on importing food commodities. Food prices in these countries have become increasingly expensive and unaffordable for the poor.

Editor : Annissa Mutia

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Global Cereal Price Index Falls 4.1% from its June 2022 Peak

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