FAO: Global food prices fall for the first time in 12 months

FAO Food Price Index fell by 2.5 per cent in June, after a year of consecutive increases

Global food commodity prices fell in June for the first time in 12 months, according to a benchmark United Nations report released on July 8, 2021.

The Food and Agriculture Organization (FAO) Food Price Index averaged 124.6 points in June 2021, down 2.5 per cent from May, but still 33.9 per cent higher than its level in the same period last year. The decline in June marked the first drop in the Index following twelve consecutive monthly increases.

The FAO Food Price Index tracks changes in the international prices of the most globally traded food commodities. The drop in June reflected declines in the prices of vegetable oils, cereals and, though more moderately, dairy products, which more than offset generally higher meat and sugar quotations.

The FAO Vegetable Oil Price Index fell by 9.8 per cent in the month, marking a four-month low. The sizeable month-on-month drop mainly reflects lower international prices of palm, soy and sunflower oils.

The FAO Cereal Price Index fell by a more moderate 2.6 per cent from May, but remained 33.8 per cent higher than its value in June 2020. 

The FAO Dairy Price Index fell by 1 per cent to 119.9 points in June. 

The FAO Sugar Price Index moved against the overall food price trend, rising by 0.9 per cent month-on-month, marking the third consecutive monthly increase and reaching a new multi-year high.

The FAO Meat Price Index also rose by 2.1 per cent over the month to June, continuing the increases for the ninth consecutive month and placing the index 15.6 per cent above its value in the corresponding month last year, but still 8.0 per cent below its peak reached in August 2014.