FAO Food Price Index dips during the month of December

The FAO Food Price Index reported a decrease of 0.5% in December compared to November, despite a 6.7% increase from the previous year. This decline was primarily due to a drop in international sugar quotations. In 2024, the index saw a 2.1% decrease from the average value in 2023, offset by increases in vegetable oils, dairy, and meats. The cereal price index experienced a 9.3% decrease from its year-earlier level, while the meat price index rose by 0.4%. The dairy price index also increased, driven by surging butter prices, but the sugar price index led the monthly decline, standing 10.6% below its December 2023 level.

The benchmark for world food commodity prices declined in December compared to the previous month, led down by a drop in international sugar quotations, the Food and Agriculture Organization of the United Nations (FAO) reported Friday. The FAO Food Price Index, which tracks monthly changes in the international prices of a set of globally-traded food commodities, averaged 127.0 points in December, down 0.5 percent from November and up 6.7 percent from December 2023. For 2024 as a whole, the index recorded 122.0 points, 2.1 percent lower than the average value in 2023, offsetting significant decreases in quotations for cereals and sugar with smaller but not insignificant increases in prices for vegetable oils, dairy, and meats. The FAO Cereal Price Index in December was relatively unchanged from November and 9.3 percent below its year-earlier level, as a marginal uptick in maize quotations offset a drop in those for wheat. For 2024 as a whole, the FAO Cereal Price Index averaged ...