The United Nations’ World Food Price Index experienced a slight dip in December compared to November, primarily driven by a decrease in global sugar prices. However, the index still showed a significant increase compared to the same period last year, according to data released on Friday.
Compiled by the UN Food and Agriculture Organization (FAO), the index decreased to 127.0 points in December, down from a revised 127.6 points in November. This drop marks a 6.7% year-on-year increase, though it remains 20.7% lower than the record-high levels reached in March 2022. For the year 2024, the index averaged 122.0, which was 2.1% lower than the 2023 average, as significant drops in cereal and sugar prices were offset by smaller increases in vegetable oils, dairy, and meat.
Sugar prices led the monthly decline, falling 5.1% in December due to favorable sugarcane crop forecasts in major producing nations. This was 10.6% below prices from December 2023. Dairy prices, after rising for seven consecutive months, fell by 0.7%, although they were still up by 17.0% year-on-year. Vegetable oil prices also decreased by 0.5% from November but remained 33.5% higher than a year earlier. Meat prices rose by 0.4%, marking a 7.1% increase from December 2023.
The FAO’s cereal price index showed little change from November, remaining 9.3% lower than the previous year, with a slight increase in maize prices offset by a drop in wheat prices. FAO has not provided a new global cereal production forecast, with the next update expected next month.
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