World food prices decline in August

The Food and Agriculture Organisation (FAO) reports drop in food price index for the fourth month in a row in August, hitting the lowest level since June 2012. The index measures the monthly change in international prices of a basket of food commodities. It averaged 201.8 points this August, nearly 4 points (1.9%) below its July value and 11 points (or 5.1%) less than in August 2012. A fall in prices of cereals and oil led to the decline. Meanwhile, prices for dairy, meat and sugar went up.

The FAO Cereal Price Index averaged 210.9 points in August, down 16.4 points (7.2%) from July and 49.4 points (or 19%) from August 2012. This is likely resulting from expectations of strong growth in world cereal production in 2013, according to FAO.
 
The FAO Oils/Fats Price Index averaged 185.5 points in August, 5.7 points (or 3.0%) below the July value and the third consecutive monthly decline.
 
The FAO Dairy Price Index averaged 239.1 points in August, 2.8 points (1.2% ) more than in July and 37% above its level in August last year. Prices increased last month for all the dairy products that make up the index, except butter, as export supplies remain limited in major trading countries. 

The FAO Meat Price Index averaged 175.0 points in August, an increase of 2.2 points (1.3%).

Related link: World Food Price Index