In May, the FAO Food Price Index increased: the decline in sugar and vegetable oil prices did not offset the rise in cereal and dairy prices

The FAO Food Price Index (FFPI) reached 120.4 points in May 2024, up 0.9% from April. The rise in cereal and dairy prices offset the decline in sugar and vegetable oil prices, while meat prices remained almost unchanged. Despite the third consecutive month of growth, the FFPI is still 3.4% lower than in May last year and 24.9% below its peak in March 2022.

The average FAO Cereal Price Index in May was 118.7 points, 6.3% higher than in April but 8.2% lower than in May 2023. World export prices for cereals, especially wheat, increased due to unfavorable weather conditions in key exporting countries and damage to port infrastructure in the Black Sea region.

The FAO Vegetable Oil Price Index in May was 127.8 points, 2.4% lower than the previous month but 7.7% higher than in May last year. The decrease was driven by a drop in palm oil prices, which offset the rise in soybean, rapeseed, and sunflower oil prices.

The FAO Dairy Price Index in May was 126.0 points, 1.8% higher than in April and 3.5% higher than in May 2023. The price increase was due to rising demand amid the expected reduction in milk production in Western Europe and Oceania.

The FAO Meat Price Index in May was 116.6 points, 0.2% lower than in April and 1.3% lower than in May last year. Prices for poultry and beef decreased, while prices for pork and lamb increased.

The FAO Sugar Price Index in May was 117.1 points, 7.5% lower than in April. The decline was due to the successful start of the new harvest season in Brazil and increased export supply.