Global Food Prices Fall for Second Straight Month as Grain, Dairy and Sugar Costs Drop

Global food prices fell for a second straight month in June, led by declines in grains, dairy products and sugar, South Korea's Ministry of Agriculture, Food and Rural Affairs said on July 4, citing data from the United Nations' Food and Agriculture Organization.

The FAO's global food price index stood at 130.3 points last month, down 0.3% from 130.8 points in May.

The index rose for three consecutive months from February through April before turning lower in May.

The FAO publishes monthly food price indexes for five commodity groups — grains, vegetable oils, meat, dairy products and sugar — based on international price trends for 24 items.

Grain, dairy and sugar prices fell in June, while vegetable oil and meat prices rose.

South Korea's consumer prices for agricultural and livestock products rose 3.2% in June from a year earlier, matching the overall consumer inflation rate.

The ministry said it will step up monitoring of supply and demand conditions for individual items and use available policy tools to manage agricultural and livestock supplies, as external uncertainties including global commodity prices persist.

Lee Su, Hankyung.com reporter, 2su@hankyung.com