Global Food Price Index Concludes 2023 with a 10% Decrease Compared to 2022 Levels.
The global food price index of the UN food agency concluded the past year approximately 10 percent lower than its 2022 levels, with December values also experiencing a decrease from the previous month. This decline has helped alleviate concerns regarding global food price inflation, as reported by Reuters.
In December, the Food and Agriculture Organization's (FAO) price index, which monitors the most traded food commodities worldwide, averaged 118.5 points, marking a 1.5 percent decrease from November and a 10.1 percent drop from December 2022.
Throughout 2023, the index averaged 13.7 percent below the levels of the previous year, with sugar prices being the only exception, having increased during this period. However, the FAO noted a 16.6 percent decline in the sugar price index in December compared to November. This decline was primarily attributed to robust production in Brazil and reduced use of sugarcane for ethanol production in India, according to the UN agency.
In December, the FAO's cereal price index rose by 1.5 percent from November, driven by increases in wheat, maize, rice, and barley prices due to challenges in shipments from major exporting countries. However, for the entire year, cereal prices were 15.4 percent below their 2022 average, except for rice, as global markets remained well-supplied.
Vegetable oils experienced the most significant price decrease, with a 1.4 percent drop in December from November and a substantial 32.7 percent decline for the entire year. The FAO's meat price index decreased by 1.0 percent in December from November and was down 1.8 percent year-on-year. Meanwhile, the December dairy price index saw a 1.6 percent increase month-on-month but was down 16.1 percent compared to the previous year.