The index of food prices FAO by the end of July amounted to 179,1 points, which is 3.9 points, or 2.3%, higher than in June. At the same time in annual expression the indicator has increased by 16.6 points, or by 10.2%. This figure peaked in January 2015, the organization (and a month earlier, the increase amounted to 1.4% and 7%, respectively). The increase is due to increase in prices of grains, sugar and dairy products.

Thus, the index of prices for dairy products in July increased by 3.6% or 7.6 points, up to 216.6 points. International prices for butter, cheese and whole milk powder increased, and nonfat dry milk, by contrast, declined. The reduction of export opportunities has led to a rise in the price of butter, which in July reached a new high, in the end, the gap between prices of butter and other dairy products increased.

The index of grain prices rose nearly 8 points, or 5.1%, to 162.2 points. The growth of export prices for wheat contributed to the dry and hot weather, which led to a further deterioration of the harvest of spring wheat in North America. Prices of oilseeds declined by 1.8 points, or 1.1% compared with June, to of 160.4 points. The decrease was due to higher prices for palm oil.

The price index of sugar at the end of July rose 10.2 points, or 5.2% on a monthly basis. "In July, was first recorded growth in sugar prices since the beginning of the year. The main catalyst for the increase in sugar prices in July was a sharp rise in the exchange rate of the Brazilian real; however, the overall weather conditions are favorable harvest in Brazil, the largest sugar producer in the world and also the growth and development of sugar crops in Thailand and India," said the organization.

The cost of meat production in the reporting month was virtually unchanged compared with June, the rate is fixed at the level in 175,1 points. "The growth of international prices for lamb in July was offset by the decrease in quotations of beef, pork and poultry. The main reason for the decline in beef prices was the weak import demand in the United States, where the rise of its own production," says FAO.

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