Global food priecs may have eased following the UN’s Black Sea Grain Initiative, but they continue to rule above the levels seen before the Russia-Ukraine war and the covid outbreak, United Nations Conference on Trade and Development (UNCTAD) said in a recent report.
This assume significance for India as it is witnessing a sharp surge in food prices, including those of milk. Inflation in the food basket in February was at 5.95%, up from 5.94% in January.
The food basket has a weightage of 39.06% in the overall Consumer Price Index. The Food and Agriculture Organization (FAO) reports that food prices are almost 18% lower than their all-time high in March 2022, following the start of the war in Ukraine.
This downward trend in prices was supported by the efforts of the Black Sea Grain Initiative, UNCTAD said. “However, price levels are still high when compared to pre-war and pre-pandemic levels.