FAO index shows decline in global food prices, except cereals
The decline extends a steady easing in costs that have strained household budgets in the better part of last year and this year.
Consumers are breathing a sigh of relief after global benchmark food prices fell for the third consecutive month in November.
The latest update from the UN Food and Agriculture Organisation (FAO) shows broad price drops across major food categories, with cereals being the only exception.
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The Food Price Index averaged 125.1 points during the month, a 1.2 per cent decline from October’s revised level. The index tracks monthly changes in the international prices of a basket of commonly traded food items.
It now stands 2.1 per cent below its level in November 2024 and 21.9 per cent lower than its all-time peak in March 2022. It fell to 128.8 points in September, from 129.7 points in August.
The decline extends a steady easing in costs that have strained household budgets in the better part of last year and this year.
Declines across several major food categories drove the overall drop during the month, with FAO pointing to notable decreases in sugar, dairy, meat and vegetable oils.
Sugar Price Index saw the largest fall, dropping 5.9 per cent on the back of expectations of ample supplies this season and strong output from Brazil, India, and Thailand.
Dairy Price Index also slipped 3.1 per cent, weighed down by lower butter and whole milk powder prices as milk production and export availability continued to rise in key producing regions.
Meanwhile, the Meat Price Index eased 0.8 per cent, with global poultry prices falling due to plentiful exportable supplies and intensified competition.
Vegetable oils also contributed to the downward pressure.
The FAO Vegetable Oil Price Index fell 2.6 per cent from October, as drops in palm, rapeseed and sunflower oil quotations outweighed a slight rise in soyoil prices.
“International palm oil prices fell in November, resulting in a discount relative to competing oils, largely due to higher-than-expected production in Malaysia,” FAO added.
Cereals were the only major group to buck the trend.
The FAO Cereal Price Index rose 1.3 per cent, driven by a 2.5 per cent increase in global wheat prices despite generally comfortable global supply conditions and promising harvests in Argentina and Australia.
Wheat markets strengthened on potential Chinese interest in US supplies, ongoing conflict in the Black Sea region, and expectations of reduced plantings for Russia’s 2026 crop.
International maize prices also firmed, supported by strong demand for Brazilian shipments.
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