Global Food Prices Fell 2.3% in June 2022

Global food prices have shown a decline, following a drop in the prices of vegetable oils, cereals, and sugar in the global market.

The Food and Agriculture Organization (FAO) average food price index fell 3.7 points (2.3%) to 154.2 in June 2022 compared to the previous month (month-to-month/m-to-m).

The decline in global food prices was driven by falling prices of palm oil, sunflower oil, soybean oil, and rapeseed oil. Palm oil prices have fallen for three consecutive months due to increased seasonal production from major producers and improved export supply prospects from Indonesia amid improving stockpiles.

In its release, the FAO stated that this is the third consecutive decline from its highest level of 159.7, reached in March 2022. However, the current level is still 29 points (23.1%) higher than the level a year ago.

Last month's food price decline was led by a drop in the vegetable oil price index, which fell 17.4 points (7.6%) to 211.8 from the previous month. This was followed by the cereal price index, which fell 7.2 points (4.1%) to 166.3, and the sugar price index, which fell 3.1 points (2.6%) to 117.3.

Meanwhile, the dairy price index rose 5.9 points (4.1%) to 149.8 in June 2022. Similarly, the meat price index also increased by 2 points (1.6%) to 124.7.