World food prices fell in January. This was caused by a sharp decline in prices for sugar and vegetable oils. This is reported by Reuters.
The FAO Food Price Index, which tracks monthly changes in the basket of international food trade, averaged 124.9 points in January against 127.0 in December. Despite the monthly decline, the index remained 6.2% higher than a year earlier, but was still 22% below its peak in March 2022.
Sugar prices fell by 6.8% month-on-month and by 18.5% year-on-year. The decline in prices was mainly due to improved global supply prospects, in particular due to favorable weather in Brazil and the resumption of sugar exports from India.
Vegetable oil prices fell by 5.6% last month as global prices for palm and rapeseed oil fell, while soybean and sunflower oil prices remained stable.
Meat prices also fell, losing 1.7% in January.
Grain prices, on the other hand, rose slightly, rising by 0.3% compared to December, but remained 6.9% lower than in January 2024. While export prices for wheat declined slightly, corn prices rose due to revised forecasts for lower production and stocks in the United States. Rice prices fell by 4.7%, reflecting ample export supplies.
Dairy prices increased by 2.4% month-on-month and by 20.4% year-on-year, driven by a monthly increase in cheese prices that outweighed a decline in butter and milk powder prices.