Despite the naira’s surge, food costs are rising as the US prepares to release T-bills. Distribute The Food and Agriculture Organization (FAO) reported that prices of meat and vegetable oil increased in April, following a seven-month fall in food costs.
This increase was greater than the decline in prices of sugar and dairy products. The food price index, which measures variations in the prices of a selection of internationally traded food goods, increased by 0.3 percent to an average of 119.1 points in April from 118.3 points in March. Compared to the same month in 2023 (128.7 points), it decreased 7.4%.
The intentional agency’s meat price index, a leading driver of the uptick, rose 116.3 points from its 113.0 points (1.6 percent) in the previous month, marking its third consecutive increase since February.
However, it declined 0.4 percent from 116.8 points recorded a year ago.
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“In April, international poultry meat prices rose, underpinned by steady import purchases by Middle East countries amid the continued challenges to production stemming from avian influenza outbreaks,” the report stated.
“International poultry meat prices rose, underpinned by steady import purchases by Middle East countries amid the continued challenges to production stemming from avian influenza outbreaks,” it added.
The vegetable price index plunged 0.3 percent to 130.9 percent from 130.6 percent in March, marking a 13-month high since April 2023. It soared 0.7 percent from 130.0 in the same month of 2023.
“The marginal increase reflects the net effect of higher sunflower and rapeseed oil quotations, more than offsetting slightly lower palm and soyoil prices,” the international report said.
It noted that international sunflower and rapeseed oil prices rose, underpinned by continued firm global import purchases and unfavourable weather conditions in certain parts of Europe that affected the growth of rapeseed.
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The agency’s sugar price index declined 4.4 percent from March 133.1 points to 127.5 points in the period under review, its second consecutive monthly decline. Sugar prices declined 14.7 percent from 149.5 points in the same month a year ago.
The decrease in sugar prices was because of improved global supply prospects, hinged on outstanding outputs in India and Thailand, two top world suppliers of the item.
“Improved rainfall in Brazil in late March and early April, after a prolonged period of dry weather conditions, eased concerns over prospects for the recently started harvest and contributed to the month-on-month price decline.”
The FAO dairy price index for April decreased 0.3 percent to 123.7 points from 124.0 points in Marc, the first decline of the item in six months. It declined 4.3 percent below its value in the corresponding period last year.
The report noted that the decline in prices of dairy products was due to the reduction of prices of skim milk powder in the international market.
