Global food prices declined the most since 2008 as Ukraine will be restarting exports of grains and vegetable oils, somewhat relieving the supply tension. A United Nations index of world food costs plummeted almost 9% last month, the lowest since January. Moreover, with the Northern Hemisphere gearing up for harvests and concerns about a looming recession could build up further pressure on food prices.
On the other hand, according to the Bureau of Labor Statistics, nonfarm payrolls rose 528,000 for July, and the unemployment rate was back to pre-pandemic levels at 3.5%, surpassing consensus estimates. This might prompt the Fed to announce another 75 bps hike in September to curb historically high inflation.
