FAO’s global food price index fell in December

The FAO food price index, which tracks monthly changes in the prices of the most important food commodities in world trade, was just 0.5% lower than in November, but still 6.7% higher than a year ago.

For the year, the index averaged 122.0 points, 2.1% lower than the 2023 average. The trend was driven by significantly lower prices for cereals and sugar, which were not offset by cautious increases in the prices of vegetable oils, dairy products and meat within the index.

The global cereal price index remained essentially unchanged in December, but was 9.3% below its level a year earlier, even though corn prices rose somewhat (wheat prices fell). Looking ahead to 2024, the sub-index fell 13.3% compared to the 2023 average, a trend that has been ongoing since 2022. The rice index closed with an annual increase of 0.8%, hitting a 16-year high in nominal terms.

The vegetable oil price index has shrunk by 0.5% since November, but is still 33.5% above its level a year earlier. Last year’s average was 9.4% above the 2023 average, due to tighter global supplies.

Breaking a three-month downward trend, the meat price index rose 0.4% month-on-month, closing 7.1% higher than a year earlier. Looking at annual averages, the meat price index was 2.7% higher than in 2023, as beef, mutton and poultry prices dominated, while pork prices fell.