International food commodity prices have recorded their sharpest decline in seven years, the Food and Agriculture Organization (FAO) has said.
A statement by the UN body revealed that the prices of virtually all commodities tracked in its Food Price Index registered marked dips in August. These commodities include dairy, vegetable oils, sugar and cereals.
“Ample supplies, a slump in energy prices and concerns over China’s economic slowdown all contributed to the sharpest fall of the FAO Food Price Index in almost seven years.
“The index averaged 155.7 points in August 2015, down 5.2 percent from July, the steepest monthly drop since December 2008.”
Contrary to the general downward trend, meat prices in August remained virtually unchanged from the previous month, although there was an overall drop of 18 percent compared to the meat price index’s historic peak in August 2014.