Global food prices have been tumbling in the back half of the year after nearly two years of soaring.
Liz Ann Sonders, the chief investment strategist at Charles Schwab, tweeted Monday that the Food and Agriculture Organization’s (FAO) global food price index has fallen for six consecutive months after the latest monthly decline of 1.1% in September.
Sonders said global food prices are “decisively rolling over,” though some on Twitter disputed her, as she replied: “Decisive seems appropriate given 6-month change is fastest (worst) since GFC.”
Decisive seems appropriate given 6-month change is fastest (worst) since GFC pic.twitter.com/JbeHsfoExl
— Liz Ann Sonders (@LizAnnSonders) October 10, 2022
Others said even though food prices around the world appear to be rolling over, US inflation remains stubbornly high.
And yet… pic.twitter.com/nRBV5T1uL7
— 𝐓𝐗𝐌𝐂 (@TXMCtrades) October 10, 2022
Someone complained: “Sure doesn’t feel like it in the grocery store.”
“Apparently, our local supermarket hasn’t gotten the message,” another Twitter user said.
Someone else said: “None reflected in good old Texas where prices continue to go up daily, especially on n all staples. Milk, eggs, meat all up over 20% and still climbing in major chain.”
One user noted the reversal in prices is “Great news for those facing food insecurity,” though we must add world food prices remain above levels that triggered 2010/11 Arab Spring.
Recall we pointed out World Food Prices Crash The Most Since 2008 in August. The trend appears welcoming, but the UN warned not too long ago that fertilizer affordability could slash future harvests in the next planting season.