Global Food Prices: December Decline Fueled by Sugar Dip

The United Nations' world food price index decreased in December, driven by a reduction in sugar prices. Despite the dip, the index displayed a substantial year-on-year increase, with December 2024 showing a 6.7% rise from the previous year, alongside notable shifts in other food commodities.

The United Nations’ global food price index saw a reduction in December, primarily due to falling sugar prices, according to the latest data from the U.N. Food and Agriculture Organization (FAO). The index, which measures the prices of a basket of internationally traded food commodities, decreased to 127.0 points, down from 127.6 in November.

Despite the drop, the December value marked a 6.7% increase compared to the same time in the previous year, although it remains significantly below the record high achieved in March 2022. For the entire year, the index averaged 122.0 points, representing a slight 2.1% decline from 2023 levels.

Sugar prices spearheaded the downturn, experiencing a 5.1% monthly reduction due to enhanced prospects for sugarcane crops in leading production countries. In contrast, dairy and vegetable oil prices reported modest changes, reflecting broader market trends and production fluctuations globally.

(With inputs from agencies.)