Global food prices have remained steady in November.

This is as a result of falling international prices for cereals, meat and dairy products which were offset by increased prices for vegetables, oils and sugar, according to the Food and Agriculture Organisation (FAO) of the United Nations.

The FAO food price index which tracks monthly changes in international prices of food commodities averaged just slightly higher than the level of November 2021 having fallen consistently since summer.

Notwithstanding this, the index in real terms remains substantially above the peak of 2010.

Despite the moderation in commodity prices, consumers who have yet to feel the full impact of rising commodity prices are still feeling the pinch of food price inflation.

Euro area annual food price inflation is expected to increase to 13.6% in November up from 13.1% in October continuing the upward trend from spring.

By comparison, annual food price inflation was 2.2% in November 2021.

World dairy and grain prices falling

The FAO dairy price index, which fell for the fifth consecutive month, still remains over 9% above its value a year ago reflecting lower demand for skim milk powder, whole milk powder and butter in particular.

The cereal price index while down in November, largely as a result of the extension of the Black Sea Grain Initiative, remains 6.3% above its value a year ago.