The United Nations' world food price index eased slightly in August, data released on Friday showed, as lower prices for sugar, meat and cereals more than offset higher dairy and vegetable oil prices.

The price index, compiled by the U.N. Food and Agriculture Organization to track the most globally traded food commodities, slipped to 120.7 points in August from a revised 121 in July.

The FAO index hit a three-year low in February this year as food prices retreated from a record peak set in March 2022 following Russia's invasion of Ukraine.

The August value was 1.1% lower than its level a year ago and 24.7% below its peak from March 2022.

In a separate report, the FAO lowered its forecast for global cereal production in 2024 by 2.8 million metric tons to 2.851 billion tons, putting it almost on a par with the previous year's output.

The decrease largely reflects reduced prospects for coarse grain crops in the European Union, Mexico and Ukraine, thanks to hot and dry weather conditions.