Lower wheat and maize prices drive down food indexListen /
Lower prices on the international market for wheat and maize have helped to drive down the Food and Agriculture Organization's monthly Food Price Index.
The FAO Index is based on the prices of a basket of internationally-traded food commodities.
In June, it averaged 206 points, down 1.8 per cent on prices for May and 2.8 per cent down on the previous year.
Mamoun El Amrouk is an Economist with FAO's Trade and Market Division.
He says there had been concerns that wheat prices would remain high because of the continuing unrest in Ukraine, one of the main suppliers of the cereal in the region.
“We’ve recorded a 7% decline in the prices of both wheat and maize, as a result of further improvements in world crop prospects as well as diminishing concerns over disruptions of shipments from Ukraine.” (16″)
The index had risen to a ten-month high of 213 points in March 2014, but fell in April, May and June, mainly as a result of lower cereal, vegetable oil and dairy prices.
Sugar prices also declined in June from May, but remained up from last year.
Sophie Outhwaite, United Nations