The UN Food and Agriculture Organisation’s (FAO) Food Price Index rose by 2.3 percent from June to July, marking a third successive month of increases. Food prices in July were 10.2% above their July 2016 levels.

FAO said a combination of supply constraints and currency movements boosted prices, with cereals, sugar and dairy all seeing rises. meat values were stable and vegetable oil prices even decreased further.

The UN organisation’s cereal price index rose by 5.1 percent in July (and 9.5 percent from July 2016). Stronger wheat prices and, to a lesser extent, also firmer rice quotations have led the rise in cereal prices seen over the summer. Continued hot and dry weather, which affected spring wheat conditions in North America and fuelled quality concerns lay behind this latest increase. Maize prices, on the other hand, reminded relatively steady.

Vegetable oil prices fell by 1.1% over July, to their lowest level since August 2016. Palm oil, the major driver behind the index, ed prices lower. Rapeseed and sunflower oil values strengthened over the month, preventing the Index from falling more markedly.

Dairy prices rose by 3.6 percent from June and  were 52.2 percent above July 2016 values. International prices of butter, cheese and Whole Milk Powder (WMP) increased, but those of Skimmed Milk Powder (SMP) declined. The meat price index was virtually unchanged, though, with sheep meat recording price increases, but bovine products losing value.

Sugar prices rose by 5.2 percent from June, but remain 26 percent below their value from this time a year ago. July marked the first monthly increase in sugar prices since the beginning of the year, with rises in the Brazilian real largely driving increases.