World food prices fell in January to a record low over the past seven years, according to the food and agriculture organization of the United Nations (FAO).

In January, prices fell by 1.9% in annual terms, while the most significant decrease showed the price of sugar. The index of food prices calculated by FAO, fell in January to the level 150,4, which is 16% below the level a year ago. This is the lowest level since April 2009

"The main reasons for the prolonged fall in the prices of basic food items are abundant availability of agricultural products, the global economic slowdown and the strengthening U.S. dollar," says FAO.

The index of world sugar prices decreased in January by 4.1% compared with the index in December 2015, This is the first decline in the index after a four-month growth. Sugar is getting cheaper because the experts have improved the harvest forecast of sugar cane in Brazil.

The price index for dairy products declined in January by 3% due to the increase in inventory of milk powder in the EU and New Zealand and weak global demand.

The cereal price index fell last month by 1.7% due to the increase in world grain reserves and increased competition in the market, especially the market of wheat and corn, but also due to the strengthening of the US dollar.

Prices for vegetable oil dropped in January by 1.7%, the reason was the increase in stocks of soybean oil in the world.

The meat price index declined last month by 1.1%. Fell all categories of meat products, except pork, since the EU since January introduced a program of cost recovery for the storage of products of pork.

Index FAO food price - weighted average of the monthly change in world prices of a basket of five food commodities: grain, meat, dairy products, vegetable oils and sugar.