Agricultural Inputs

Reductions in cereal and vegetable oil prices contributed to a slight decline in the FAO Food Price Index in September. The Index remains nearly 20 percent below its March 2022 peak but rose 3.4 percent from September 2024.

Global staple food prices remained largely stable in August, according to the latest FAO Food Price Index. The Index was nearly 7 percent higher than its August 2024 level but still well below the record high seen in March 2022.

Worldwide, government spending on subsidies in agriculture, fishing, and fossil fuels amounts to a staggering $1.25 trillion annually. Subsidies play a significant role in every country’s fiscal policies, regardless of income level or spending patterns. Spending on energy and agricultural subsidies consistently accounts for 2%-3% of GDP on average across income levels and make the production and transportation of food cheaper.

The FAO Food Price Index rose by 1.6 percent in July based on increasing meat and vegetable oil prices. The Index remains 7.6 percent higher than its 2024 level but nearly 19 percent below its March 2022 peak.

The FAO Food Price Index rose marginally in June to reach nearly 6 percent above its June 2024 level. Declining cereal and sugar prices were balanced by increases in meat, dairy, and vegetable oil prices. The Index remained more than 20 percent below the high seen in March 2022.