Food Prices Fall in December But Remain Higher Overall in 2025: FAO Food Price Index

The FAO Food Price Index declined marginally in December, with prices reaching 2.3 percent below December 2024. Overall prices for 2025 remained 4.3 percent higher than 2024, however.

The Cereal Price Index rose 1.7 percent in December, although the overall index was nearly 5 percent lower in 2025 than in 2024 and saw the lowest annual average since 2020. Wheat price increases were tempered by strong supplies in Argentina and Australia. Maize prices, on the other hand, increased due to strong demand, particularly from the ethanol industry in several regions. Rice prices rose by 4.3 percent in December due to reduced harvests and strong demand; rice prices overall for 2025 were down 35.2 percent from 2024.

The Vegetable Oil Price Index fell slightly in December to reach a six-month low. However, overall for 2025, vegetable prices were up 17.1 percent from 2024, a three-year high. Soy oil prices fell in December based on strong supplies from the Americas. Palm oil prices, on the other hand, rose month-on-month due to forecast harvest reductions in Southeast Asia.

The Meat and Dairy Price Indices both declined in December, by 1.3 and 4.4 percent, respectively. Meat prices for 2025 rose by 5.1 percent from 2024, while dairy prices rose by more than 13 percent. The Sugar Price Index rose in December by 2.4 percent, by remained 24 percent below its December 2024 level. Overall sugar prices for 2025 fell by 17 percent from 2024.

Sara Gustafson is a freelance writer and communications consultant.