Latest news with #MonikaTothova
Gulf Insider
03-05-2025
- Business
- Gulf Insider
Global Food Prices Climb Toward Arab Spring-Era Highs Amid Trade War Turmoil
Global food prices surged to a two-year high in April, driven by U.S. tariff policy uncertainty that has injected turmoil across markets. The latest spike brings prices dangerously close to levels that helped fuel the Arab Spring uprisings across the Middle East and North Africa between 2010 and 2012. The Food and Agriculture Organization of the United Nations (FAO) reported on Friday that its Food Price Index—which tracks monthly changes in international prices of globally traded food commodities—averaged 128.3 points in April, up 1% from March and 7.6% from the same month last year. The Food Price Index (FFPI) subcomponents, including cereals, meat, and dairy, mainly were up, while vegetable oils and sugar were down. Here's a breakdown of how FFPI's subcomponents performed in April: Cereals: Up 1.2% from March; wheat rose on tighter Russian exports, rice up on demand for fragrant varieties, maize higher due to low U.S. stocks. Meat: Up 3.2%; pig meat led gains, bovine prices firmed in Australia and Brazil on strong demand and limited supply. Dairy: Up 2.4%; butter hit an all-time high due to declining inventories in Europe, dairy index now 22.9% higher year-over-year. Vegetable Oils: Down 2.3%; palm oil fell with rising Southeast Asian output, soy and rapeseed oil up on strong demand, sunflower oil steady. Sugar: Down 3.5%; decline driven by fears of weakened demand from beverage and food sectors amid uncertain global economic outlook. At 128.3, the FAO said FFPI moved to a two-year high on 'currency fluctuations influencing price movements in world markets, while tariff policy adjustments raised market uncertainty.' Those prices are nearing 2010-12 Arab Spring levels… Bloomberg quoted Monika Tothova, an economist at the FAO, as saying that short-term demand for some ag products has been visible amid the tariff war between President Trump and China. The lingering question is whether the FFPI will continue rising amid tariff uncertainty—or if potential signaling around new trade talks between the U.S. and China suggests this price surge may be temporary. Still concerning is the level at which prices linger and how higher food prices can trigger social destabilization in weak countries.
Toronto Sun
02-05-2025
- Business
- Toronto Sun
Global food prices rise to two-year high amid tariff uncertainty
Published May 02, 2025 • Last updated 5 minutes ago • 1 minute read A customer shops at a grocery store in Wheeling, Ill., Wednesday, Dec. 11, 2024. Photo by Nam Y. Huh / THE ASSOCIATED PRESS Global food prices rose to a two-year high in April, a sign that tariff uncertainty is starting to put a squeeze on trade. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account A United Nations index tracking raw commodity costs of food rose to 128.3, a 1% month-on-month jump, taking it levels last seen in March 2023. While it takes time for the impact to filter through to supermarkets and the gauge remains well below a 2022 peak, the move hints at the possibility of pricer groceries after a period when food inflation had eased. 'Currency fluctuations influenced price movements in world markets, while tariff policy adjustments raised market uncertainty,' according to the UN's Food and Agriculture Organization. Countries may have driven up short term demand for some products, said Monika Tothova, an economist at the FAO, by trying to stock up to reduce the impact of tit-for-tat levies set in motion by President Donald Trump's widespread tariffs Other supply concerns also pushed up the price of grains, meat and dairy. Tighter wheat supplies from Russia, the world's top exporter, saw the grain edging up slightly, the FAO said. The rise in dairy, 2.4% on the previous month, was led by international butter prices, which hit a new all-time high due to declining European inventories. While food supplies and prices are often determined by weather, additional volatility, stemming from moves such as US tariffs and the subsequent retaliation from trade partners, had been flagged earlier this year. Despite a 90-day pause on some levies, global food markets have been roiled by the policy back and forth of recent weeks. 'We are always concerned about the dry conditions here and there,' said Tothova, but what is going to happen with trade policy 'and how countries will retaliate, that still remains a big story.'
