The United Nations Food and Agriculture Organization (FAO) Food Price Index rose in February reaching 167.5 points, up 1.7 percent from January, partly driven by increases in dairy prices for the second month in a row.
The Index, which is an indicator of the monthly changes in international prices of food commodities, is currently at its highest level since August 2018, but still nearly 2.3 percent below its level at the same month last year.
In February, the FAO Dairy Price Index increased by 5.6 percent from January, to continue its monthly rise that started in January by 12.2 percent compared to December 2018. An expected seasonal drop in butter production partly contributed to pushing up prices.
Moreover, the FAO Cereal Price Index averaged almost 169 points in February, up marginally from January mostly on firmer maize prices.
Also, the FAO Vegetable Oil Price Index increased by 1.8 percent, to 133.5 points, marking its highest level since October 2018. The rise in February was mainly due to higher price quotations of palm, soy, and sunflower oils.
Global cereal markets remain well supplied in 2018/19 despite lower production and higher prices.