The standard reference food basket has increased by 33 percent since the start of the crisis in Ukraine, up 87 percent from the same period last year, reaching SYP 313,784 (USD 111.51 at the rate of official exchange rate of 2,814 SYP/USD).
The FAO Food Price Index continued to decline for the fourth consecutive month. It averaged 140.9 points in July 2022, down 8.6% from June 2022, but still 13.1% higher than its value a year ago. The decline is due to lower prices for vegetable oils and cereals.
The minimum expenditure basket fell slightly by 2% month-on-month, mainly due to lower nominal prices for edible oils, vegetables and fruits. However, the July 2022 MEB remained 16% higher than at the start of the crisis in Ukraine and 46% higher since September 2021.
July 2022 marks six months since the start of the Ukraine crisis, and although food prices are already on an upward trajectory, the conflict has exacerbated the trend. The UN-backed deal to resume grain and oil exports appears to have cooled the market.
The official exchange rate has remained at 2,814 SYP/USD since the devaluation in April 2022, while the informal exchange rate in July 2022 was 4,032 SYP/USD.