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Food Prices Drop Most in 7 Years on Grain Glut, China Rout

  • UN's FAO food index extends slump to lowest since 2009
  • Grains, dairy and sugar prices fall amid ample supplies
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Photographer: Prashanth Vishwanathan/Bloomberg
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Gluts in foods from grains to milk and concern that China’s slowing economy will curb demand sent global prices down the most in almost seven years.

An index of 73 food prices fell 5.2 percent in August, the most since December 2008, to 155.7, the United Nations’ Food & Agriculture Organization wrote in a report Thursday. The slide will cut the food bill for importers such as Egypt, said Abdolreza Abbassian, a senior economist at the FAO.