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Global Food Prices Drop From Two-Year High in May, UN’s FAO Says

  • According to the FAO, global food prices fell by 0.8% in May 2025, primarily due to decreases in the costs of grains, sugar, and vegetable oils.
  • This decline followed strong harvests in Argentina and Brazil, a record US corn crop expectation, and rainfall reducing drought risks in key northern hemisphere regions.
  • Vegetable oils declined by 3.7% due to increased palm oil supplies in Southeast Asia, while sugar prices dropped 2.6% amid sluggish demand. Meat and dairy prices saw moderate gains, with beef prices hitting unprecedented levels even as poultry costs decreased following excess supply pressures.
  • The FAO Food Price Index averaged 127.7 points in May, down 0.8% from April but up 6% year-on-year and over 20% below its March 2022 peak pre-dating Russia's invasion of Ukraine.
  • The overall price decreases suggest improved supply and favorable weather, partly offsetting geopolitical tensions that previously inflated global food costs.
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Global food prices experienced a notable decline in May, as revealed in the original report of the Food and Agriculture Organization of the United Nations (FAO).According to the FAO food price index, which measures monthly changes in a basket of internationally traded food products, the average was 127.7 points in May, a 0.8 per cent decrease compared to April.Cereals bring surprisesThe FAO cereal price index fell by 1.8 per cent from one month …

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FAO: World food prices decreased in May, thanks to the harvest of cereals, sugar and oil The global food prices index fell in May, thanks to the reduction in cereals, sugar and vegetable oil prices, the...

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El Economista broke the news in on Friday, June 6, 2025.
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