Food prices around the world cooled slightly in August, as lower prices for sugar, meat and cereals more than offset higher dairy and vegetable oil prices, the United Nations food agency said on Friday.

The price index, compiled by the U.N. Food and Agriculture Organization (FAO) 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 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 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.

The forecast for world cereal utilization in 2024/25 was lowered by 4.7 million tons versus July to 2.852 billion tons, reflecting a 0.2% increase from 2023/24.

The agency also cut its forecast for world cereal stocks at the close of seasons in 2025 by 4.5 million tons to 890 million.