Global food price index fell in June to lowest level in two years
The global food price index fell in June to its lowest level in two years, following the cheapening of vegetable oils, sugar, cereals and dairy products, the Food and Agriculture Organization of the United Nations announced. At the same time, cereal prices declined 2% last month, according to the institution.
The UN Food and Agriculture Organisation publishes the monthly Food Price Index, which measures changes in a basket of food consisting of cereals, vegetable oils, dairy, meat and sugar.
In June, the Food Price Index value is the lowest recorded by the FAO after April 2021 and makes the overall index 23% below the historical peak reached in March 2022, just after the Russian invasion of Ukraine.
Cereal prices saw a 2 percent decline in June, with cheapening also seen in maize, barley, sorghum, wheat and rice. Vegetable oil prices also fell 2.4 percent in June compared to the previous month, reaching their lowest level since November 2020, following declines in palm and sunflower oil, which offset price increases in rapeseed and soybean oils.
World sugar prices as calculated by the FAO also fell by 3.2% in June compared to the previous month, for the first time after four months of consecutive increases, following progress on the Brazilian harvest and reduced import demand.
Dairy prices were down 0.8% in June compared to the previous month and meat prices were unchanged.
Separately, the UN Food Organisation released a new report on cereal supply and demand. The FAO forecasts world cereal production in 2023 to be around 3 billion tonnes, up 1.1% from 2022.
