MercoPress. South Atlantic News Agency

Latam food prices at slow growth rate for third month running, says FAO

The lower rate of food inflation in the region in June largely responds to the change in inflation in Brazil and Mexico

FAO’s Monthly Food Price Report notes that food prices in Latin America and the Caribbean reduced their growth rate for the third consecutive month. Regional food inflation increased only 0.5% in June, down from 1% in May and 1.2% in April, which is particularly relevant for the poorest, who spend a larger proportion of their income on food.

The lower rate of food inflation in the region in June largely responds to the change in inflation in Brazil and Mexico, where food inflation diminished substantially: from 0.6% to -0.1% and 0.6% to 0.1% between May and June, respectively. In Colombia, Paraguay and Ecuador, food prices fell in June when compared to May. In Colombia and Paraguay food inflation shrank down to -0.2% and -0.8% respectively, while in Ecuador food prices fell for the second consecutive month, reaching 0.4% in June. In Chile, food inflation reached 0.3% in June, 0.2 percentage points less than in May. In Peru, food prices varied 0.2% in June, compared with 0.4% in May. In Central America and the Caribbean, Costa Rica, Honduras and the Dominican Republic had reductions in their levels of food inflation, while El Salvador, Guatemala, Haiti, Nicaragua and Panama had higher food inflation in June when compared to May. Costa Rica’s food inflation reached 1%, Honduras 0.8%, and the Dominican Republic saw a drop in food prices for the second consecutive month, reaching 0.5% food inflation in June. Food inflation in El Salvador reached 1.4%, 1.2% in Guatemala, 0.6% in Haiti, 2.9% in Nicaragua and 0.9% in Panama.