Food prices reached the highest level in 19 months in November. According to data from the Food and Agriculture Organization (FAO) of the United Nations, this increase has occurred due to the increase in vegetable oil prices in November 2024.
According to FAO data, the food price index average in November was 127.5 points, which is 0.5% higher than the October level. At the same time, it is 5.7% more compared to the same period a year ago. This index is at its highest level since April 2023.
Vegetable oil prices increased by 7.5%
Vegetable oil prices increased by 7.5% compared to the previous month. This is the fastest increase in a single month after July 2022. This increase is due to increase in prices of palm oil, rapeseed, soya and sunflower oil. During this period, the prices of dairy milk powder along with butter and cheese have also increased by 0.6%.
Grain prices fell by 2.7%
According to the FAO, grain prices fell 2.7% in November. Global wheat prices declined due to increase in supply and improvement in crop conditions from major wheat exporting countries across the world. While maize prices remained stable. Because, generally favorable weather in South America balanced out strong demand in Brazil and Mexico.
Meat prices increased by 5.9% compared to last year
At the same time, meat prices declined by 0.8% on a monthly basis, but increased by 5.9% compared to a year ago. Pig meat prices fell due to excess supply and low demand.
However, a slight decline was also seen in eggs and chicken. After rising for two consecutive months, sugar prices declined by 2.4% compared to October and 21.7% compared to November last year.
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related to food items and retail inflation…
Retail inflation rose to 6.21% in October: highest in 14 months; Prices of vegetables, fruits and meat increased
Due to costlier food items, retail inflation has increased to 6.21% in October. This is the highest level of inflation in 14 months. The inflation rate in August 2023 was 6.83%. Whereas in September, a month before October, this rate had reached 5.49% due to the cost of vegetables.
Food items contribute about 50% to the inflation basket. Its inflation has increased from 9.24% to 10.87% on month-on-month basis. Whereas rural inflation has increased from 5.87% to 6.68% and urban inflation has increased from 5.05% to 5.62%.
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Graphics Source: VaskarAssets
