A drop in global food prices in December for the ninth consecutive month was driven by lower vegetable oil prices, the United Nations’ Food and Agriculture Organization (FAO) reported.
The FAO Food Price Index (FFPI) dropped by 1.9% in December compared to the previous month, the 6 January report said.
The FFPI averaged 132.4 points in December, 1.0% below its value the previous year. However, for 2022 as a whole, the index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 143.7 points, 14.3% higher than the average value over 2021.
“Calmer food commodity prices are welcome after two very volatile years,” FAO chief economist Maximo Torero said.
“It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs, and with prices of rice increasing, and still many risks associated with future supplies.”
The FAO Vegetable Oil Price Index dropped by 6.7% compared to the previous month to reach its lowest level since February 2021.
International quotations for palm, soyabeans, rapeseed and sunflowerseed oils all declined in December, driven by subdued global import demand and prospects of seasonally rising soyabean oil production in South America as well as declining crude oil prices.
The FAO’s Vegetable Oil Price Index illustrates the changes in international prices of the 10 most important vegetable oils in world trade, weighted according to their export shares.
