ISTANBUL

The food prices increased globally in July due to rising international prices of meat and vegetable oils, according to a report by the UN's Food and Agriculture Organization (FAO) on Friday.

FAO's food price index rose 1.6% month-on-month to 130.1 points in July, the report showed.

The vegetable oil price index rose sharply by 7.1% on a monthly basis in July, reaching a three-year high of 166.8 points.

The prices of palm, soybean, and sunflower oils contributed to this increase, with palm oil prices rising due to strong global demand and increased competitiveness. Sunflower oil prices also rose due to shrinking export supplies in the Black Sea Region. Conversely, rapeseed oil prices fell due to a lack of new crop supply in Europe.

The meat price index also rose 1.2% in July, reaching a new record high of 127.3 points. Import demand, particularly from China and the US, led to higher beef and mutton prices.

The dairy price index edged down by 0.1% from June to 155.3 points, marking the first decline since April 2024.

"Prices for butter and milk powders decreased, reflecting abundant export supplies and subdued import demand, particularly from Asia. However, international cheese prices continued to rise, driven by strong demand in Asian and Near East markets and tighter export availability in the European Union," the report said.

The cereal price index also fell 0.8% month-over-month to 106.5 points in July, while the sugar price index was down 0.2% to 103.3 points

On the other hand, despite the monthly increase, the overall food price index remained 18.8% below its peak in March 2022, but still 7.6% higher than in July 2024.