Global food prices fell in June for the first time in 12 months, the United Nations food agency said on Thursday.
The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 124.6 points in June, down 2.5% from May but still 33.9% higher than its level in the same period last year.
The drop in June reflected declines in the prices of vegetable oils, cereals and, though more moderately, dairy products. This decreases more than offset generally higher meat and sugar quotations.
The FAO Vegetable Oil Price Index decreased by 9.8% in the month, marking a four-month low.
The FAO Cereal Price Index fell by 2.6% from May, but remained 33.8% higher than its value in June 2020. International wheat prices declined slightly by 0.8% in June, with a favorable global outlook supported by improved production prospects in many key producing countries.
The dairy prices fell by 1% to 119.9 points in June, according to the report.
The FAO Sugar Price Index moved up by 0.9% month-on-month, marking the third consecutive monthly increase and reaching a new multi-year high. Uncertainties over the impact of unfavorable weather conditions on crop yields in Brazil, the world's largest sugar exporter, exerted upward pressure on sugar prices, the FAO said in its report.
The FAO Meat Price Index also increased by 2.1% over the month to June, continuing the increases for the ninth consecutive month and placing the index 15.6% above its value in the corresponding period last year.
FAO and the Organisation for Economic Co-operation and Development in a report released on Monday said the prices of major food commodities are expected to ease in the coming decade as demand growth slows and output rises.