Global Food Prices Turn Downward for First Time in Four Months

Last month, the global food price index decreased for the first time in four months. The UN Food and Agriculture Organization (FAO) announced that the food price index for May was 130.8, a 0.2% drop from the previous month. This index had fallen for five consecutive months until January, but after rising for three months from February to April, it showed a downward trend again in May. Fluctuations in food prices directly impact global food security and consumer grocery bills.

Looking at item-specific prices, the cereal price index rose 2.6% from the previous month to 114.3. Wheat prices continued to climb for the fourth consecutive month due to anticipated harvest reductions in major exporting countries and the impact of rising fuel and fertilizer costs. The rice price index increased by 2.7% due to weather concerns in Asian exporting countries and rising oil prices. The sugar price index stood at 95.1, up 7.5% from the previous month; speculation that major Brazilian growing regions are prioritizing ethanol production over sugar from sugarcane drove the price increase. The meat price index rose 0.1% from the previous month to 130.5.

The vegetable oils price index fell 4.6% from the previous month to 185.0. Palm oil prices, after an upward trend for five consecutive months, shifted to a decline. The dairy price index decreased by 0.5% from the previous month to 119.2, with butter and cheese prices falling due to intensified competition among major exporting countries.

Last month, domestic consumer prices for agricultural, livestock, and fishery products rose 1.8% year-on-year, remaining lower than the overall consumer price inflation rate of 3.1%.