Food Prices Slightly Decreased in December

Food prices slightly decreased in December, with significantly cheaper sugar and stable grain prices, reported the United Nations Food and Agriculture Organization (FAO) on Friday.

The FAO’s index of prices for a basket of basic food products averaged 127.0 points in December and was down 0.5 percent from November, calculated the FAO.

Compared to December 2023, food prices were up by 6.7 percent.

For the entire year of 2024, the basket of basic food products was cheaper by 2.1 percent, with significantly lower prices for grains and sugar outweighing the increases in vegetable oils, milk and dairy products, and meat.

The largest decrease in December was in sugar prices, which fell by 5.1 percent compared to November, thanks to improved harvest forecasts in leading producers. Compared to December of the previous year, prices were down by 10.6 percent.

Milk and dairy products also saw a noticeable decrease in the last month of the previous year, falling by 0.7 percent compared to November. This was the first price reduction since April, pressured by lower butter prices amid subdued demand and accumulated stocks.

Compared to December 2023, milk and dairy product prices were up by 17 percent, while for the entire year of 2024, they increased on average by 4.7 percent.

Grain prices remained stable in December compared to the previous month. However, compared to December 2023, they were down by 9.3 percent.

Export prices for wheat were stable in December, reflecting a balance between subdued demand and improved supply in Argentina and Australia, and poor conditions for winter wheat crops in Russia.

Corn prices slightly increased due to a modest improvement in U.S. exports, alongside reduced supply and strong demand for Ukrainian exports.

For the entire past year, grain prices were on average down by 13.3 percent compared to 2023. This marks a second consecutive year of decline after record levels in 2022, noted the FAO.

Vegetable oils decreased in price by 0.5 percent in December compared to November. However, compared to the end of 2023, they were up by 33.5 percent. For the entire year of 2024, their prices were on average 9.4 percent higher than in 2023 due to reduced supply, the FAO explained.

Meat prices, at the end of the previous year, were an exception with a monthly increase of 0.4 percent. On an annual basis, prices rose by 7.1 percent.