Global food prices fall in December 2024

The Food and Agriculture Organization of the United Nations (FAO) global food price index fell in December from November, led by a drop in global sugar prices, data showed on Friday. However, the index remains high on a year-on-year basis.

The index, which tracks the prices of the world’s most traded food commodities, fell to 127 points in December, down from a slightly revised 127.6 points in November. The previous figure in November was 127.5 points.

FAO said the index rose 6.7% in December from a year earlier, but remained 20.7% below its all-time high reached in March 2022.

The index averaged 122 points in 2024, down 2.1% from 2023, as large declines in cereal and sugar prices offset slight increases in vegetable oils, dairy and meat prices.

Sugar prices led the monthly declines in December, falling 5.1% month-on-month on improved prospects for sugarcane crops in major producing countries. This brought sugar prices down 10.6% year-on-year.

Dairy prices also fell after seven consecutive months of increases, falling 0.7% from November but still up 17% year-on-year.

Vegetable oil prices fell 0.5% month-on-month but were up 33.5% year-on-year.

Meat prices rose 0.4% month-on-month in December but remained 7.1% higher than in December 2023.

FAO noted that the cereal price index was little changed in December from November, down 9.3% year-on-year, as lower wheat prices offset a slight increase in maize prices.

FAO did not provide new forecasts for global cereal production, with the next estimates expected next month.