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World Food Prices Hit Lowest Since Jan 2025
9 Jan
Summary
- December saw global food prices fall for the fourth consecutive month.
- Dairy prices dropped 4.4% in December, hitting a yearly low.
- Despite December's fall, 2025 saw a 4.3% increase in food prices overall.
Global food prices continued their downward trend in December, marking the fourth consecutive month of decline and settling at their lowest average since January 2025. This drop was significantly influenced by reductions in dairy, meat, and vegetable oil prices. For the full year 2025, however, the FAO Food Price Index indicated an overall increase of 4.3% from 2024, driven by substantial rises in vegetable oil and dairy costs.
In December, the dairy price index fell by 4.4%, primarily due to a sharp decrease in butter prices following increased cream availability in Europe. Meat prices also dipped by 1.3%, with bovine and poultry categories leading the decline. Vegetable oil prices saw a modest easing of 0.2%, reaching a six-month low, though they remained significantly higher for the full year.
Conversely, cereal and sugar prices experienced increases in December. The FAO Cereal Price Index rose 1.7%, supported by concerns over Black Sea exports and strong ethanol production. Sugar prices also climbed 2.4%, counteracting a prior downward trend. Despite these monthly upticks, the full-year averages for cereals and sugar reflected declines from 2024.
