Global food prices fell by 1.8 per cent from May to June, the United Nations' Food and Agriculture Organization (FAO) reported Thursday, according to dpa. It was the third consecutive month-on-month reduction in the Rome-based agency's Food Price Index, based on a basket of internationally traded food commodities. Prices have fallen in recent months "mainly as a result of lower cereal, vegetable oil and dairy prices," FAO reported, adding that sugar prices also declined from May to June, while meat prices rose. FAO also released an updated forecast for world cereal production in 2014, standing at 2.5 billion tons, 18 million tons higher than last month's estimate, but 1-per-cent lower than a record output last year. "The recent upward revision reflects improved production prospects for coarse grains and wheat crops, particularly in the United States, the EU and India," it reported. Food markets are closely monitored by FAO, as part of its efforts to tackle global hunger.
