Global Food Prices Rise

Global food prices in May rose to their highest level since October last year, according to the United Nations Food and Agriculture Organization on Thursday. The food price index averaged 176.2 points in the month, up 2.2 percentage points or 1.2% from April, the FAO said in a statement, World Bulletin reported.  The FAO Food Price Index is a trade-weighted index that tracks international market prices of five major food commodity groups. “The increase in May reflected a continued steep rise in dairy price quotations, while those of cereals also rose, albeit at a slower pace,” the statement read. It added that vegetable oil and sugar markets were under downward pressure while meat values slightly changed. The dairy price index rose for the fourth consecutive month, rising 5.5% or 11 points in May. “The rise in May was mainly driven by sizeable increases in the price quotations of cheese, skim milk powder and butter, as those of whole milk powder were virtually unchanged,” it said. The cereal price index advanced 2.4% on a monthly basis in May.