International food prices have fallen for the eleventh consecutive month, but in Argentina the increases continue

International food prices recorded an average of 129.8 points last February, registering a decrease of 0.6% compared to January and thus continuing the downward trend for the 11th consecutive month. The data comes from an index prepared by the Food and Agriculture Organization of the United Nations (FAO, for its initials in English) based on the average price of 95 commodities.

In this way, the “external pressure” factor on food inflation in Argentina was eliminated, although the evolution of Consumer Price Index (CPI) It shows that within the country, food products continue to increase at a significant rate.

As detailed in the report, since the last decline, “the index has declined by 29.9 points (18.7%) from the maximum level reached in March 2022. The slight decline in the food price index of the fao in February reflects significant drops in the price indices of vegetable oils and dairy productsas well as slightly lower grain and meat price indices, which more than offset a sharp rise in the sugar price index.

In detail, the FAO reported that the index of cereal prices recorded an average of 147.3 points in February, showing a slight decrease of 0.1% since January and 1.4% more than a year ago. In this regard, the price of wheat increased by 0.3%, mainly due to dry conditions in parts of the United States. Additionally, the values ​​of the but they only increased by 0.1%, due to the impact of the severe drought in our country. Also sorghum fell by 0.2%, barley fell slightly by 0.9% and rice down 1% over the past month.

In addition, the FAO explained that the price index of vegetable oils reached 135.9 points last month, a monthly decline of 4.5 points or 3.2%, and it was noted that this is the lowest value since the start of 2021. All this , as a result of the index’s continued weakness, was due to lower global prices for palm, soybean, sunflower and rapeseed oils.

Compared to international prices of Dairy products, the index last month was 131.3 points, a monthly decline of 2.7% and 7.2% below its level of the same month last year. According to the FAO, the index was affected by the fall in the values ​​of the butter and skimmed milk powder. “Continued weakness in global import demand, particularly for short-term deliveries, has driven prices down, despite a notable increase in purchases by North Asia in recent weeks. export availabilities, in particular stocks of butter, cheese and skimmed milk powder, in Western Europe, where seasonal milk deliveries in recent months have increased compared to their corresponding monthly averages, has also depressed world prices export,” he detailed in the report.

Finally, the international meat prices it fell over the past month by 0.1% month-on-month and 1.7% year-on-year, and with an index that averaged 112 points. In this segment, the poultry meat it fell for the eighth month in a row, reflecting abundant global supply against weaker import demand, despite outbreaks of avian flu in several major producing countries. There pork meat increased due to market concerns over low availability of slaughter-ready pigs amid growing domestic demand in Europe. And the values ​​of beef They have stabilized after experiencing continuous declines since June 2022, as rising imports, particularly from North Asia, have balanced global demand and available supplies relatively well.

Salvador DiStefanoan economic analyst, pointed out in his latest report that retail inflation in Argentina increased by 6% per month, “in line with what the market had been expecting since, a few days before, the city’s monthly inflation of Buenos Aires, which reached 7.3% as well as the so-called worker inflation which was 5.5%”. Furthermore, he pointed out that in annual terms, retail price inflation reached 98.8%.

Regarding future prospects, Di Stefano felt that throughout this year “we will have to live with annual 3-digit inflation. Over the past 12 months, on average, monthly inflation has been 6.0%. If this average were repeated every month, the projection of annual inflation above 100.0% would be respected throughout 2023. Within the index, several elements have already reached 3-digit annual inflation, such as the case of clothes of clothing and footwear, alcoholic beverages, household equipment and restaurants and hotels”.

Continue reading: