Dairy, sugar and meat prices lead decline as UN agency flags easing inflation pressures and record cereal output
World food prices declined for a fifth consecutive month in January, driven mainly by sharp falls in dairy, sugar, and meat prices, the Food and Agriculture Organization (FAO) of the United Nations said on Friday, offering fresh relief to food-importing countries grappling with inflation.
According to the FAO, its food price index, which tracks monthly changes in a basket of globally traded food commodities, averaged 123.9 points in January, down 0.4 per cent from December and 0.6 per cent lower than a year earlier. The index now stands 22.7 per cent below its peak in March 2022, reached after Russia’s invasion of Ukraine disrupted global supply chains.
Among major commodity groups, dairy prices recorded the steepest decline, falling 5 per cent month-on-month, largely due to lower international prices of cheese and butter. Meat prices slipped 0.4 per cent, as a drop in pig meat prices outweighed gains in poultry.
Sugar prices fell 1 per cent from December and were 19.2 per cent lower than a year ago, reflecting expectations of higher global supplies, the FAO said.
In contrast, prices of cereals and vegetable oils edged higher. The FAO’s cereal price index rose 0.2 per cent, as stronger rice prices linked to firm demand offset slightly weaker prices for other major grains. The vegetable oil index climbed 2.1 per cent, supported by higher palm, soy and sunflower oil prices, despite a decline in rapeseed oil.
In a separate report, the FAO raised its forecast for global cereal production in 2025 to a record 3.023 billion metric tonnes, citing improved wheat yields and better maize prospects. It also said global cereal stocks are expected to rise in the 2025–26 season, pushing the stocks-to-use ratio to 31.8 per cent, the highest level since 2001.
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