FAO Food Price Index Falls by 0.6 Percent

12-Jan-2026 04:36 PM

Rome. The Food and Agriculture Organization (FAO), a specialized agency of the United Nations, reported that its Food Price Index fell by 0.6 percent in December 2025 compared to November, dropping from 125.10 points to 124.30 points. 

The decline was primarily driven by lower prices for dairy products, vegetable oils, and some other commodities.

The index remained 3 points lower than in December 2024 and significantly below its peak level in March 2022.

For the entire year 2025, the average FAO Food Price Index reached 127.20 points, 5.20 points higher than in 2024. On an annual basis, the index was 2 percent lower and 22 percent below the March 2022 peak, clearly indicating continued downward pressure on prices in the global food market.

In December 2025, the vegetable oil price index fell by more than 2 percent compared to November, settling at 164.60 points. While prices for soybean oil, rapeseed oil, and sunflower oil softened during this period, palm oil prices increased. Palm oil prices remained firm due to seasonal declines in production in major producing countries and sustained import demand.

Similarly, sugar prices saw a slight increase, with the price index rising by 2.4 percent in December to 90.71 points, after three consecutive months of decline. The price recovery in December was attributed to indications of lower-than-expected production in Brazil.