Food inflation might be slowing — but that doesn’t spell good news for food prices just yet

Food prices are still high by historical standards.
Food inflation is easing, but food prices are still high by historical standards.
The UN’s Food Price Index fell for the sixth straight month in September, but was still up 5.5% on-year.
Aside from raw material prices, other factors — such as labor costs — also affect food prices.

Food price inflation could ease going forward thanks to good harvests, but this does not mean food prices are coming off, Tiff Macklem, the governor of the Bank of Canada said on Sunday.

“I’m actually hopeful that at least food inflation — which isn’t quite the same thing as food prices — is going to come down because in Canada and a number of other countries that have been reasonably good harvests,” Macklem told government-funded CBC Radio, in an interview about the cost of living in Canada.

His comments came just after the United Nations Food and Agriculture Organization released data on Friday showing its food price index fell for the sixth…

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This article was written by [email protected] (Huileng Tan) and originally published on www.businessinsider.com