Despite a decline in recent months, the annual average of the FAO Food Price Index has exceeded the 2024 figure

In December, the average value of the FAO Food Price Index decreased compared to November by 0.6% to 124.3 points, which is 2.3% lower than the December 2024 figure and 22.4% lower than the peak value of March 2022. The annual average value of this index was 127.2 points, which is 4.3% higher than the 2024 figure.

The FAO Cereal Price Index rose 1.7% in December from November to 107.3 points. A possible disruption in supplies from the Black Sea region supported wheat prices, while strong supply and good harvests in Argentina and Australia put pressure on them. Corn prices rose on strong export demand and increased ethanol production in Brazil and the United States. The FAO All-Rice Price Index rose 4.3% on a smaller harvest and stronger demand. The annual average of the FAO Cereal Price Index in 2025 fell to a 6-year low of 107.9 points, down 4.9% from 2024, while the annual average of the FAO All-Rice Price Index was 103.5 points, down 35.2% from 2024.

The FAO Vegetable Oil Price Index fell 0.2% in December to a 6-month low of 164.6 points, as falling prices for soybean, rapeseed and sunflower oils failed to offset rising palm oil prices. Soybean oil prices fell on strong supply from North and South America, rapeseed on the back of good canola harvests in Australia and Canada, and sunflower on weak import demand. Palm oil prices, meanwhile, rose on a seasonally adjusted decline in Asian production. The annual average index rose to a 3-year high of 161.6 points, 17.1% above the 2024 level.

The FAO Meat Price Index fell 1.3% in December to 123.6 points, up 3.4% from December 2024. Prices for all meat categories fell amid increased supply and reduced import demand. The annual average value of the index was 123.2 points, up 5.1% from December 2024.

The FAO Dairy Price Index fell by 4.4% in December due to seasonal increases in production and lower demand. Despite this, the annual average value of the index was 146.9 points, which is 13.2% higher than in 2024.

The FAO Sugar Price Index rose 2.4% in December to 90.7 points, after three months of decline, 24% below its December 2024 level, driven by a sharp decline in production in Brazil and expectations of a good cane harvest in India. The annual average value of the index fell to its lowest level since 2020 at 104.3 points, 17% below its 2024 level.

Unlike other groups, most of the prices used in the calculation of the FAO Meat Price Index were unknown, so the Index value for recent months is derived from a combination of actual and forecast prices. This sometimes leads to significant adjustments to the Index, which can significantly change the FAO Food Price Index.