World food prices up in May for 3rd straight month

By Tuba Ongun

Global food prices edged up for the third consecutive month in May, fueled by higher cereal and dairy prices, according to the UN Food and Agriculture Organization (FAO) on Friday.

The FAO food price index rose 0.9% month-on-month to 120.4 points in May, marking its highest level in 6 months, a UN food agency report showed.

On an annual basis, the figure was down 3.5% from May 2023.

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 surged 6.3% from a month earlier in May, led by rising global wheat export prices.

The dairy price index went up by 1.8% with increased demand from the retail and food services sectors ahead of the summer holidays as well as market expectations that milk production in Western Europe may fall below historical levels.

The sugar price index, on the other hand, plunged 7.5% from the prior month in May, mainly driven by pressure from the good start of the new harvest season in Brazil.

The vegetable oil price index dropped 2.4% from April as lower prices for palm oil more than offset higher prices of soy oil, and firmer prices of rapeseed and sunflower oils.

The FAO meat price index fell marginally by 0.2% in the same period, as international prices of poultry and bovine meats decreased while those of pig and ovine meats increased.