ROME: Global food prices increased slightly in June, driven primarily by a surge in vegetable oil, dairy and meat prices, according to the United Nations’ Food and Agriculture Organisation (FAO). The latest FAO Food Price Index, which monitors monthly price movements across internationally traded food commodities, averaged 128.0 points for the month. Though this marks a 0.5 percent decrease from May, certain categories pushed the overall trend upward.
Vegetable oils led the price gains due to stronger demand and concerns over production in key exporting countries. Dairy and meat prices also contributed to the index’s resilience, with higher international demand influencing their rise.
In contrast, cereal prices fell, offering a balancing effect on the global index. In a separate forecast, FAO projected the world cereal production for 2025 at approximately 2.925 billion metric tonnes, slightly up from the earlier estimate of 2.911 billion tonnes – a 0.5 percent increase.
This upward revision is largely attributed to improved expectations for wheat and rice yields in key agricultural regions. The FAO’s cereal outlook reflects a relatively stable supply situation globally, even as market pressures on other food categories persist.
While the overall rise in the Food Price Index remains modest, it reflects broader market volatility influenced by trade dynamics, weather events, and geopolitical uncertainties affecting agricultural production and distribution.
Policymakers and food market analysts continue to monitor these developments closely, as sustained food price increases can have significant implications for global food security, especially in vulnerable economies.
