The Food and Agriculture Organization (FAO) Food Price Index dropped for the third month in a row in December, driven by a decrease in world prices for cereals and oils and fats.
The Index fell 1.1%, averaging 209, the lowest level since June. Cereals saw the biggest decline of 6%, while oils and fats were down 1.9%.
Meat prices for the month only saw a small drop, with the FAO Meat Price Index averaging 176 points, down slightly from November. Pig meat saw the biggest decline, falling by 2%.
The Food Price Index 2012 average was 7% lower than 2011, with the biggest drops registered for sugar, dairy products and oils. Meat prices saw a more modest decline of 1.1%.
Jomo Sundaram, Assistant Director-General in charge of FAO’s Economic and Social Development said: “The result marks a reversal from the situation last July, when sharply rising prices prompted fears of a new food crisis,” adding that coordinated international action and slowing demand had ensured that “2012 prices ended up below the previous year’s levels.”