Global energy product prices shed 7.6% in May, leading the fall across key commodities, as a macro-economic slowdown cut demand and bumper harvests prevented a flare-up in food prices.

Food price index declined 2.1%, while metals were down 4.7% last month, according to the data compiled by the World Bank, offering some respite to countries such as India and China that are heavily dependent on commodity imports to sustain the growth engine ticking. Commodity prices started falling after peaking in early 2011, with the index of the metal segment sliding by 25%, farm items by 19% and energy products by 10% by the end of the year, according to the World Bank Index.

Brent crude prices fell 8.2% to $110.52 per barrel in May and Australian coal shed 6.84% to $94.66 per tonne, showed the data. Sugar lost 8.53% to 45.88 cents per kg and arabica coffee beans lost 3.55% to $4.07 per kilogram. Thai rice (5% broken), however, bucked the trend and gained 8.82% in May, thanks to high support prices paid to farmers there. Copper prices declined by 4% to $7,956 per tonne and aluminum prices by 2%$2,008 per tonne. Gold shed 3.6% to $1,591 per troy ounce, while silver lost 8.43% to $28.89 per troy ounce.

The World Bank expects the average oil price to dip to $98 in 2012 from $104 last year ?due to slowing global demand, growing supply, efficiency improvements and substitution away from oil?. ?The long-term oil prices that underpin these projections are based on the upper end cost of developing additional oil capacity … It is expected that Opec will endeavour to limit production to keep prices relatively high … However the organisation will also be wary of letting prices rise too much, having witnessed the impact this has had on demand in recent years,? according to a World Bank report. Similarly, metal prices are expected to decline in the medium term, barring aluminum which may gain due to higher costs of power and other inputs, it said.

Rice prices are expected to remain subdued due to plentiful supplies from India, the world’s second-largest grower, and soaring stock levels. A third straight year of record rice output is expected to drive up inventories to the most in more than a decade, dragging down prices, showed the data released by the US Department of Agriculture. Rice harvest will likely touch 466.4 million tonne (mt) in the 2012-2013 season, boosting grain stocks by 0.7% to 104.9 mt, it added.

Prices of edible oil are expected be supported by the diversion of oils from bio-diesel production in Europe. ?Unlike grains, where demand tends to be relatively stable above a certain income threshold, per capita demand for edible oils continues to rise,? it said.