Food prices around the world have declined to their lowest level in two years, according to newly released data from the United Nations (U.N.).
An index of food-commodity costs fell 2.1% in August of this year amid rising output of vegetable oils and milk, said the United Nations’ Food and Agriculture Organization.
The gauge of global food prices has now declined 24% from a record high reached in March 2022 after Russia’s military invaded Ukraine and disrupted global grain exports.
Stabilizing grain prices have been a big contributor to price declines in recent months, said the U.N. in a news release.
Ukrainian exports of wheat continue to flow despite the end of a Black Sea grain deal and repeated attacks on that country’s seaports by Russian forces.
Farmers in the U.S. are harvesting a near-record corn crop this year despite extreme heat in much of that country.
Dairy, vegetable oil, and meat prices all dropped at least 3% in August, according to the U.N.
However, despite world food prices trending lower, the U.N. warned that extreme weather is threatening many crops and food inflation remains high in many countries, including Canada.