The United Nations’ world food price index eased slightly in August, data released yesterday showed, as lower prices for sugar, meat and cereals more than offset higher dairy and vegetable oil prices.
The price index, compiled by the UN Food and Agriculture Organization to track the most globally traded food commodities, slipped to 120.7 points in August from a revised 121 in July.
The FAO index hit a three-year low in February this year as food prices retreated from a record peak set in March 2022 following Russia’s invasion of Ukraine.
The August value was 1.1 per cent lower than its level a year ago and 24.7pc below its peak from March 2022.
In a separate report, the FAO lowered its forecast for global cereal production in 2024 by 2.8 million metric tonnes to 2.851 billion tonnes, putting it almost on a par with the previous year’s output.
The decrease largely reflects reduced prospects for coarse grain crops in the European Union, Mexico and Ukraine, thanks to hot and dry weather conditions.
The forecast for world cereal utilisation in 2024-25 was lowered by 4.7m tonnes versus July to 2.852bn tonnes, reflecting a 0.2pc increase from 2023/24.
The agency also cut its forecast for world cereal stocks at the close of seasons in 2025 by 4.5m tonnes to 890m.
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