Global food prices fell in May
Global food prices fell the most in more than two years in May as the cost of dairy products, grains and sugar declined, easing strain on household budgets.
An index of 55 food items tracked by the United Nations' Food and Agriculture Organisation (FAO) slipped 4.2 per cent to 203.9 points from 213 points in April, the Rome-based agency said today on its website.
Ukrainian consumer prices fell for the first time in more than nine years in May, led by a 0.8 per cent month-on-month drop for food and beverages.
Turkish inflation last month slowed the most since January 2003 as the central bank tightened lending and food prices slumped.
"International prices for most commodities weakened in recent weeks on generally favourable supply prospects amid growing economic uncertainties and a strengthening US dollar," the FAO wrote.
The index had its biggest percentage drop since March 2010, when the gauge dropped 4.3 per cent US milk prices fell 3.1 percent last month.
World milk production is forecast to climb 2.7 per cent this year to 750.1 million metric tons, accelerating from last year's 2.3 per cent increase, the FAO has forecast.
Corn futures fell 12 per cent in Chicago last month amid expectations for record world production after US farmers increased planting.
Wheat slipped 1.6 per cent in Chicago, while soybean futures declined 11 per cent.
A "huge" US harvest will lift world corn production by 5.4 per cent to 913 million tons in the 2012-13 crop year, the International Grains Council forecast on May 24, lifting its outlook by 12.7 million tons from a month earlier.