The Food and Agriculture Organisation of the United Nations (FAO) food price index, which reflects the global price performance of the five groups of cereals, meat, dairy products, vegetable fats and sugar, has remained almost unchanged for the second month in a row.

The organisation's report, published on Friday, noted that last month's price increases for vegetable oils, meat products and sugar were offset by a continued decline in cereal prices.

Food on the international market in July was on average 3.1 per cent cheaper than in the same month of the previous year, the FAO said.

Cereals fell by an average of 3.8 per cent during the month, as global export prices for all major cereals fell for the second month in a row. 

In contrast, the price index for vegetable oil rose by 2.4% in July, reaching its highest level in a year and a half.

The Meat Price Index rose by 1.2% on strong import demand for sheepmeat, beef and poultry, although pigmeat prices fell slightly due to oversupply in Western Europe.

Sugar on the international market rose by a relatively modest 0.7 per cent in July.

The dairy price index remained stable, with a fall in powdered milk prices offsetting increases in butter and cheese prices.