The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of commonly-traded food commodities, dropped 0.6% month-on-month to 157.4 in May of 2022, yet still close to a record high of 159.7 points hit in March.
Main decreases were observed in the vegetable oil index (3.5%), amid lower prices across palm, sunflower, soy, and rapeseed oils, due to the removal of Indonesia's export ban on palm oil.
The dairy price index also went down 3.5%, the first decline in eight months.
“Prices of milk powders declined the most, linked to market uncertainties from the continued COVID-19 lockdowns in China, while robust retail sales and high demand from restaurants in the Northern Hemisphere prevented cheese prices from falling significantly despite weakened global import demand,” FAO said.
The sugar price index diminished 1.1% as a bumper crop in India buoyed global availability prospects.
“The weakening of the Brazilian real against the US dollar, along with lower ethanol prices, also pressured world sugar prices downwards,” FAO said.
Meanwhile, meat prices saw a new all-time high, increasing by 0.6% in May even as world bovine meat prices remained stable and those of pig meat fell.
The rise in prices is due to continued supply chain disruptions in Ukraine and recent cases of avian influenza amid a surge in demand in Europe and the Middle East.
"Export restrictions create market uncertainty and can result in price spikes and increased price volatility, the decrease in oilseeds prices shows how important it is when they are removed and let exports flow smoothly," FAO Chief Economist Maximo Torero Cullen said in a statement.
