Hikes in dairy and cereals drove the price of food upwards last month, according to the FAO Food Price Index.

World food prices were 7% higher in June 2017 than the same month last year, while prices were up 1.4% on May 2017.

The FAO dairy price index rose 8.3% between May and June this year, pushing it close to the highest level in the past three years but still 24% below its peak reached in February 2014.

Prices of all dairy products rose, with butter sky-rocketing to an all-time high. Butter prices rose 14.1% between May and June.

Limited export availabilities of dairy products in all major producing countries caused the prices of butter, cheese and skim milk powder to rise significantly, contributing also to stronger whole milk powder prices.

Cereals

Wheat prices were the biggest driver of a 4.2% increase in the FAO cereal price index in June.

There was a surge in high-protein wheat values due to deteriorating crop conditions in the US, while strong import demand exerted upward pressure on international rice prices.

In contrast, record harvests in South America kept maize prices under downward pressure.

Meat prices rose 1.8% from May to June, which was the sixth consecutive month of moderate price increases.

Sugar prices fell by 13.4% from May to June, marking a 16-month low.

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