Slump in world food prices continues to gather pace

World food prices fell sharply in August, dragged down by ample supplies and external factors, including a slump in energy prices and concerns about an economic slowdown in China, the United Nations food agency said yesterday.

The Food and Agriculture Organisation’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy, meat and sugar, averaged 155.7 in August, down 8.5 points, or 5.2% from July.

The FAO said this was the sharpest monthly drop since December, 2008, but August’s reading does not break through another historic level, after the index hit a near six-year low in July.