World food prices fell in May for the second consecutive month after a record high in March, although the cost of cereals and meat rose, the UN food agency said.

The Food and Agriculture Organization (FAO) Price Index, which tracks the world's most traded food items, averaged 157.4 last month, up from 158.3 in April.

Despite the monthly decline, the May index was still 22.8% higher than a year earlier, partly due to concerns about the consequences of the war in Ukraine.

In separate cereal supply and demand assessments, FAO said it expects global cereal production to contract for the first time in four years in the 2022/23 season. by 16 million tons from the record level of 2021 to 2.784 billion tons.

While the dairy, sugar and vegetable oil price indices fell last month, the meat price index rose to a record high and the cereal index rose 2.2%, with wheat up 5.6% in monthly calculation. On an annualized basis, wheat prices rose by 56.2%.

The FAO said that wheat prices rose sharply due to India's export ban, as well as lower production prospects in Ukraine.

The vegetable oil price index fell 3.5% from April, partly due to Indonesia's decision to lift a short-term ban on palm oil exports.

The Dairy Index also fell 3.5% from the previous month, with milk powder prices falling the most due to market uncertainty related to ongoing COVID-19 lockdowns in China.

In its first global cereal production forecast, the FAO predicted declines in maize, wheat and rice production, while barley and sorghum increased.

Global cereal consumption is projected to decline by 0.1% in 2022/23 from 2021/22 levels to 2.788 billion tonnes, the first decline in 20 years.