The world price index, as reported by the United Nations Food and Agriculture Organization (FAO), concluded the previous year approximately 10% below the levels recorded in 2022. December values also saw a decline from the preceding month, providing additional relief regarding concerns over global food price inflation.
In December, the FAO’s price index, monitoring the most widely traded food commodities globally, averaged 118.5 points. This marked a 1.5% decrease from November and a notable 10.1% drop compared to December 2022 levels.
For the entirety of 2023, the index averaged 13.7% below the levels observed in the previous year, with sugar prices being the exception, exhibiting an increase over the period. However, the FAO noted a 16.6% decline in its sugar price index in December compared to November.
The UN agency attributed this decline to factors such as the robust production pace in Brazil and the reduced use of sugarcane for ethanol production in India.
In December, the FAO’s cereal price index experienced a 1.5% rise from November. Wheat, maize, rice, and barley prices all increased due to hindered shipments from major exporting countries. However, for the entire year, cereal prices were 15.4% below their 2022 average, with rice being the exception as markets remained well-supplied.
The most significant price drops were observed in vegetable oils, with the price index plummeting by 1.4% in December from November and experiencing a substantial 32.7% drop for the entire year.
In the meat category, the FAO’s meat price index saw a 1.0% decrease in December compared to November and a 1.8% decline year-on-year. Meanwhile, the December dairy price index showed a 1.6% increase month-on-month but was down 16.1% from the previous year.
The global trends reflected in the FAO’s price index underscore the ongoing dynamics in various food sectors, providing valuable insights into the overall stability and fluctuations in international food prices.