World food prices fall: FAO

World food prices continued to decline in July, the UN Food and Agriculture Organization said.

The overall price index slipped 1.9 percent to 205.9 points in July, its third consecutive monthly decline, reported Xinhua.

The biggest drop came from cereals and grains -- the largest component in the index -- which fell by nearly 4 percent. Corn prices fell the most, followed by wheat. But the prices for rice were mostly flat, with mixed reports from different countries.

Among the other components of the index, prices for oils and fats fell around 3 percent, while dairy and sugar prices fell a little more than one percent. Prices for meats were largely unchanged compared to June.

FAO Friday said prospects were for prices to fall further.