MercoPress. South Atlantic News Agency

Food prices inflation in Latin America increases sustainedly says FAO

Bolivia, Paraguay, Uruguay reported annual food inflation above 10%

Annual food inflation in Latin America and the Caribbean reached 8.7% in July almost one full percentage point above the previous month according to the Food and Agriculture Organization, FAO.

In its monthly food prices report FAO points out that food prices inflation in the region is two points higher than overall inflation which last month rose 6.8%.

“Faced with this situation the governments must strengthen their social protection net work and increase the support for the production of food from family gardens thus helping to moderate the impacts originated in the food prices’ increase”, said Fernando Soto-Baquero, head of the FAO Policies Assistance Sub Department.

Mexico, Peru and Venezuela are the countries that experienced the highest increase in monthly food inflation with jumps above 1.5% in July compared to the previous month.

Bolivia, Paraguay, Dominican Republic and Uruguay reported annual food inflation rates above 10%. A similar increase in food inflation was experienced by El Salvador and Honduras even when overall inflation in these countries increased moderately.

In contrast, Costa Rica, Nicaragua and Panama have food inflation rates that have remained unchanged or have even fallen compared to June.

In Argentina both inflation indexes have remained at a stable level in the last three months: 8.2% and 9.7% for food items.