Food prices have been steadily dropping, marking a notable shift in global markets. In December, world food prices fell for the fourth month in a row. This came mostly from decreases in dairy, meat, and vegetable oil prices. According to a recent report from the United Nations’ Food and Agriculture Organization (FAO), this was the lowest average price since January 2025.
The FAO Food Price Index averaged 124.3 points in December, down from 125.1 in November. This is also a 2.3% drop compared to last year. However, the 2025 average for the index was higher, sitting at 127.2 points. This reflects a 4.3% increase from 2024, driven largely by rising prices for vegetable oils and dairy, despite some declines in cereals and sugar.
In more detail, the dairy index saw a significant decrease of 4.4% in December, largely due to a big drop in butter prices. Increased cream availability in Europe contributed to this decline. Yet, looking at the entire year, dairy prices were still up 13.2% compared to 2024, driven by strong demand and limited supplies early in the year.
Meat prices also dipped slightly, falling 1.3% last month. This was mainly due to lower prices for bovine and poultry products. However, for the entire year, meat prices remained high, finishing 5.1% above the previous year. The ongoing global demand and uncertainty around animal diseases fueled this trend.
Vegetable oil prices softened by 0.2% in December, reaching a six-month low. Prices of soy, rapeseed, and sunflower oil played a significant role in this decrease, although some gains were seen in palm oil. For the year, the vegetable oil index was up 17.1% from 2024, primarily due to tight global supplies.
The FAO Cereal Price Index rose 1.7% in December, influenced by concerns over Black Sea exports and increased maize production for ethanol in the U.S. and Brazil. In 2025, however, the cereal index averaged 4.9% lower than in 2024, marking its third annual decline and reflecting the lowest annual average since 2020.
Sugar prices saw a rebound in December, rising 2.4% after three months of decline. This was largely because of reduced production in Brazil’s southern regions. Nevertheless, the sugar index for 2025 reached a five-year low, finishing down 17% from 2024. This highlights the abundance of global sugar supplies.
In light of these trends, experts continue to monitor market dynamics that could affect food prices. The World Bank recently noted that geopolitical events and climate change remain significant factors. As we move forward, staying informed about these price shifts could be crucial for consumers and policymakers alike. For detailed statistics and updates, you can check the latest reports from [FAO](http://www.fao.org) and [Reuters](https://www.reuters.com).
