Food costs across the world are falling for the first time in a year, according to a UN agency
The UN’s Food and Agriculture Organization (FAO) said on July 8, 2021, that global food prices dropped for the first time in a year in June.
Following a 12-month streak of rises, the FAO Food Price Index fell 2.5 percent in June, averaging 124.6 points.
According to statistics, the number was still 33.9 percent more than it was in the same time the previous year.
The drop was caused by lower costs for vegetable oils, cereals, and, to a lesser extent, dairy goods.
The FAO Food Price Index is a trade-weighted index that monitors five main food commodity categories’ worldwide market prices.
The vegetable oil price index fell the most, by 9.8%, marking the first drop in four months, owing to reduced worldwide prices for palm, soy, and sunflower oils.
The FAO Cereal Price Index fell 2.6 percent from May to June, although it was still 33.8 percent higher than June 2020.
During the same time period, worldwide quotes for all dairy products included in the index dropped by 1%, with butter seeing the most significant reduction.
In June, the FAO Meat Price Index increased by 2.1 percent for the ninth month in a row, although it remains 8.0 percent behind its August 2014 high.
In June, the sugar price index increased 0.9 percent month over month, marking the third straight monthly gain and a new multi-year high.