![Reduction in global food prices in January [World News]](https://foodcom.pl/wp-content/uploads/2023/09/Foodcom_World_News_Global-1520x760.jpg "Reduction in global food prices in January [World News]")
- The FAO food index fell by 2.1 points in January compared to December.
- This means that food is cheaper, but the index is still higher than a year ago.
- The main reason for the decline is the fall in the prices of sugar and vegetable oils.
International index shows fall in food commodity prices
The FAO, or Food and Agriculture Organisation of the United Nations, reported on Friday the January decline in food commodity prices. Changes in food costs are tracked through the FAO Food Index. It averaged 124.9 points in January, compared to 127.0 in December. Despite the monthly decline, the index remained 6.2% higher than a year earlier, but still 22% below its March 2022 peak.
What is the reason for the price reduction?
The apparent fall in food commodity prices is primarily the result of a sharp reduction in the prices of sugar and plant-based oils. Sugar prices fell by 6.8 per cent compared to the previous month and by 18.5 per cent compared to last year, largely responsible for the favourable weather in Brazil and India and the resumption of exports from India. Vegetable oil prices, on the other hand, fell by 5.6% last month. Global palm oil and rapeseed oil prices declined, while soybean oil and sunflower oil quotations remained stable. Meat prices also fell, recording a 1.7% decline in January. Cereal prices, on the other hand, recorded a slight increase, rising by 0.3% compared to December, but remained 6.9% lower than in January 2024. Dairy prices rose by 2.4% month-on-month and 20.4% year-on-year, mainly driven by a monthly increase in cheese prices, which outweighed declines in butter and milk powder prices.
