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PARIS, France (AFP) — World meals costs fell sharply in July, partly due to a deal between Ukraine and Russia lifting a sea blockade that had stopped Ukrainian grain shipments, a UN company mentioned Friday.
Meals costs soared to a document excessive in March after Russia invaded Ukraine, elevating fears that the battle between two of the world’s breadbaskets would spark starvation in nations counting on their exports.
Whereas costs stay excessive, they’ve now dropped for a fifth straight month, falling by 8.6 % in July in comparison with June, based on the Meals and Agriculture Group’s meals value index.
The index, which measures the month-to-month change in worldwide costs of a basket of meals commodities, was nonetheless 13.1 % greater than in July 2021.
The most important drop was for vegetable oil costs, which fell by 19.2 % between June and July to hit a 10-month low.
The cereal value index logged a month-to-month drop of 11.5 %, the FAO mentioned.
The decline for cereals was led by a fall in world wheat costs, “partly in response to the settlement reached between Ukraine and the Russian Federation to unblock Ukraine’s principal Black Sea ports”, the UN company mentioned.
Shipments beneath final month’s UN-brokered deal started this week, with a primary vessel carrying corn leaving Ukraine for Lebanon on Monday.
Three extra ships loaded with grain set sail on Friday, on their approach to Britain, Eire and Turkey.
“The decline in meals commodity costs from very excessive ranges is welcome, particularly when seen from a meals entry viewpoint,” FAO chief economist Maximo Torero mentioned in an announcement.
“Nevertheless, many uncertainties stay,” he mentioned, pointing to excessive fertiliser costs, a “bleak world financial outlook” and foreign money actions.
© Agence France-Presse
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