FAO Food Price Index sees continued fall

By Carina Perkins

- Last updated on GMT

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.”

Related news

Show more

Related product

Related suppliers