ABU DHABI: World food prices are seen falling further this year having settled near their lowest in seven years pressured by slowing economic growth, the United Nations’ Food and Agriculture Organisation’s (FAO) director general said on Tuesday.
The FAO’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, has fallen in each of the last four years.
It stabilised last month near a seven-year low as rises in vegetable oil and meat offset declining cereal, sugar and dairy prices.
“The slowdown of the growth of the world economy, especially China, is putting a lot of (downward) pressure on commodities,” Graziano da Silva said during a visit to Abu Dhabi.
“We expect the price to continue to fall in real terms, not necessarily nominal terms, so it will depend a lot for each country on the exchange rate,” da Silva said.