The UN Food and Agriculture Organisation (FAO) Food Price Index rose by 1.4% from May to June. The index, which tracks the price of a range of staple foodstuffs across the world, rose for the second consecutive month in June. Last month, food prices were 7% higher than their June 2016 level, driven by cereal and dairy prices.

The FAO’s Cereal Price Index was up 4.2 percent above its May level, and at the highest point in a year. Increased wheat quotations, stemming from deteriorating crop conditions in the U.S. drop the rises, despite downward pressure on maize from record harvests in South America.

Vegetable Oils rolled back from last month (3.9 percent lower than in May). Palm and soy prices drove the Index downward, with international palm oil quotations dropping by a full 7 percent (hitting a 10-month low), primarily because of good production prospects in Southeast Asia. Bumper harvests in South America drove soy oil prices down. Rapeseed and sunflower oil values also dropped.

Dairy Prices, on the other hand, rose 8.3% on the month. The dairy index is close to a 3 year high, but remains 24 percent below its all-time high reached in February 2014. Prices of all dairy products that constitute the index rose, but butter price increased the most, up by 14.1 percent. Meat prices were 1.8% higher in June, marking the sixth consecutive month of moderate price increases.

Sugar prices fell 13.4 percent to a 16-month low and continuing a stead fall observed since February this year.