World food prices fall in May: UN agency

After a rise in April, global food prices dropped in May due to lower prices of most cereals, vegetable oils and dairy products, the Food and Agriculture Organization (FAO) reported on Friday.

The FAO Food Price Index averaged 124.3 points in May, falling by 2.6% from April.

The FAO Food Price Index is a trade-weighted index that tracks international market prices of five major food commodity groups.

The cereal price index decreased 4.8% month-on-month in May, led by declines of 9.8% in world maize and 3.5% in wheat prices, according to the UN food agency.

The vegetable oil price index slipped 8.7% from the prior month, reflecting lower prices for palm, soy, rapeseed and sunflower oils.

The dairy price index edged down 3.2% in the same period, led by a steep drop in international cheese prices.

The FAO Sugar Price Index, on the other hand, increased for the fourth consecutive month, up by 5.5% from April.

The meat price index also marked the fourth successive monthly hike in May, rising 1% from the previous month.