World food prices fell for the fourth consecutive month in August, the United Nations Food and Agriculture Organization said Friday.

FAO' s Food Price Index in August dropped by nearly 2 percent from July and more than 5 percent from last August.

FAO said prices of cereals and grains, the most important component in the index, registered a dramatic 7.2 percent month-on-month decrease thanks to rising harvests and stable stockpiles and demands.

World rice supplies are now forecast to rise by 1.3 percent this year, to reach nearly 500 million metric tons. Corn and wheat supplies are on pace to rise even more, according to FAO' s "Forecast of World Cereal Production," which was released Thursday.

Prices for fats and cooking oils also dropped, falling 3 percent compared to July. The reductions helped offset the increases in dairy, meat and sugar.