Food prices sink to 17-month low as pandemic cuts demand
Food prices have dropped to the lowest level since December 2018, the United Nations' Food and agriculture Organization (FAO) said Thursday, linking the fall to the novel coronavirus.
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"Commodity food prices fell for the fourth consecutive month in May, as supplies appear strong and demand weakens due to economic contractions triggered by the COVID-19 pandemic," FAO said.
The agency's Food Price Index averaged 162.5 points in May, 1.9 percent below the previous month and marking its lowest reading in 17 months.
Compared to April, there were price declines of 7.3 per cent for dairy, 1 per cent for cereal, 2.8 per cent for vegetable oil and 0.8 per cent for meat, FAO said.
Sugar prices "bucked the trend," increasing by 7.4 per cent, due to a rebound in international crude oil prices and lower-than-expected harvests in India and Thailand, the agency reported.
FAO also said global cereal production was on track to reach a record 2.780 million tons, up 2.6 per cent from 2019-2020, with expected record maize harvests in North America and Ukraine.
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