Adjusted for inflation, the FAO Food Price Index (FPI) was up 2 percent from March, up slightly from the 12-month average growth of 1.7 percent. This increase was supported by robust gains for the sugar, meat, and oils subindexes, although every category appreciated in April.
The sugar subindex was up 3.9 percent after a 4.0 percent drop in March. Unlike other subindexes, the sugar index has shown less consistent appreciation, but the index is still up nearly 59 percent YOY thanks to strong world sugar buying, a slowed Brazilian harvest, weather issues in Europe, and logistics delays. Factors weighing on sugar include strong exports expected for India, a potential recovery for Thai production, and possible weakness for energy prices.
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