Food price index rises, posing inflation risks

We continue the topic of price development and look at the Food Price Index today. The Food Price Index has been increasing lately so in the months to come it seems reasonable to expect positive contribution to inflation stemming from higher food prices (as opposed to declining oil prices). The index remains elevated since 2021 and it went up to 128.3 in April, as increases in cereal, dairy and meat price indices outweighed decreases in those of sugar and vegetable oils. Prior to the inflation shock, the average value between 2015 and 2020 was at 95.3. After the inflation shock the Food Price Index declined visibly compared to the peak level of 160. Nevertheless, it went down below 120 level only briefly and remained above that threshold over the last year.