Global food commodity prices have hit their lowest level in over two years, according to fresh data from the United Nations food agency.
The Food and Agriculture Organization’s (FAO) price index, which tracks the most globally-traded food commodities, has hit its lowest level since March 2021.
The price index fell to 124.3 points in May, down from 127.7 in April. It is now 22% lower than the all-time high of March 2022, after the invasion of Ukraine sparked a surge in food costs.
There were “significant drops” in the price indices for vegetable oils, cereals and dairy, which were partly counterbalanced by increases in the sugar and meat indices, the FAO reports.
International wheat prices declined by 3.5% month-on-month, the Vegetable Oil Price Index fell 8.7% in May and the Dairy Price Index fell 3.9%, led by a steep drop in international cheese prices.