Global Food Prices Decline for Fifth Month, 23% Below 2022 Peak

Global food prices continued their downward trend in January, marking the fifth consecutive monthly decline, according to the United Nations Food and Agriculture Organization (FAO).

The FAO Food Price Index averaged 123.9 points in January, down 0.4% from December and 0.6% year-on-year.

The index now stands about 22.7% below its all-time high recorded in March 2022, highlighting the broader easing in global food prices.

Dairy and Sugar Lead the Decline

Dairy products posted the largest monthly drop, falling 5% due to lower cheese and butter prices.

Meat prices edged down 0.4%, as weaker pork prices offset gains in poultry.

Sugar prices also declined by 1% month-on-month and were 19.2% lower than a year earlier, reflecting improved supply prospects and contributing to softer global food prices.

Grains and Vegetable Oils Rise

In contrast, the cereals index increased by 0.2%, supported by higher rice prices amid stronger demand.

Vegetable oil prices climbed 2.1%, driven by gains in palm, soybean, and sunflower oil.

In a separate report, the FAO raised its 2025 global grain production forecast to a record 3.023 billion tonnes, citing improved wheat yields and better maize prospects.

Global stock-to-use ratios are expected to rise to 31.8% in the 2025-2026 season, potentially supporting stability in global food prices going forward.