Global food prices decline in June, FAO reports

The FAO Food Price Index, which tracks monthly changes in international prices of major food commodities, registered 103.3 points in June, down 0.3% from 103.7 points in May. Despite this monthly decline, the index shows a 1.7% increase year-on-year, indicating that prices remain higher than the same period last year. The monthly decrease was primarily driven by lower prices for sugar, cereals, and dairy products, which offset increases in vegetable oils and meat.

The cereal price index fell by 3.5% in June due to lower wheat and maize prices, supported by improved global supply outlooks. Sugar experienced the sharpest decline, with its index dropping 5.7% to 89.7 points, while dairy products decreased by 1.5% to 117.4 points. Conversely, vegetable oils continued their upward trend, reaching 192 points, a 3.8% increase, boosted by rising palm and rapeseed oil prices.

Meat prices also rose, albeit more modestly, with the index at 131 points, up 0.4%, setting a new record mainly due to higher poultry prices. Despite the annual increase, the FAO noted that its food price index remains 18.7% below the historical peak reached in March 2022. In a separate report, the FAO maintained its forecast for global cereal production in 2026 at 2.983 billion tonnes, confirming generally favorable supply prospects.

For Algeria, the FAO estimates