Tunisia: Sharp rise in the FAO Food Price Index to 28.1%

The Food and Agriculture Organization (FAO) Food Price Index in 2021 averaged 125.7 points, an increase of 28.1% over the previous year. ‘last year. It thus reached its highest level for ten years, despite a slight decline in December

It should be remembered that this index is used to measure the monthly variation in the international prices of a basket of basic food products, delivering the average of the indices of the five groups of basic products, weighted according to the respective average share of exports of each of the groups for the period 2014-2016.

With the exception of dairy products, those of all of the sub-indices that make up the Index fell last month, including international prices for vegetable oils and sugar, which were down significantly on a month-to-month basis.

Three FAO indices concern Tunisia, those of cereals, vegetable oils and sugar, of which the country is a major importer, and which weigh heavily on its finances, from which they receive a significant part of the subsidies under the Compensation Fund. As regards, first, the index of cereal prices, it averaged 140.5 points in December, down 0.9 points (0.6 percent) compared to to November. Wheat export prices fell in December as supplies increased following harvests in the southern hemisphere and demand slowed.

The vegetable oil price index averaged 178.5 points in December, down 6.1 points (3.3 percent) from recent record levels. The decline was due to weakening prices for palm oil and sunflower oil, as soybean oil and rapeseed oil values ​​were virtually unchanged from last month.

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