The Food and Agriculture Organization (FAO) food price index dropped to its lowest level in two years in May, as significant decreases in the prices of vegetable oils, grains, and dairy products outweighed increases in sugar and meat prices.
The United Nations agency revealed on Friday that its index, which tracks the prices of the most traded food commodities globally, averaged 124.3 points in May, down from a revised 127.7 points the previous month.
The May reading is the lowest since April 2021 and indicates that the overall index is now 22 percent lower than its peak in March 2022, following the start of the Russian invasion of Ukraine.
In a separate report on supply and demand for grains, the FAO forecasted that global grain production this year would reach 2.813 billion tons, reflecting a one percent increase from 2022, mainly due to an expected rise in maize production.
