Record crops prompt dip in global food prices

Global food prices dipped slightly in December, driven by falls in the cost of cereals, sugar and oils, new data from the United Nations food organisation UNFAO shows.

The FAO Food Price Index showed a 2.4% drop on November figures.

Cereals showed the biggest fall, with the FAO Cereal Index down 4.8 in December, following record crops and improved supply. Oils & fats, meats and sugar were down, while dairy prices were unchanged.

While international prices of many commodities had declined in recent months, it remained difficult to make any firm prediction on price trends for the coming months, according to FAO senior grains economist Abdolreza Abbassian.

“Given the uncertainties over the global economy, currency and energy markets, unpredictable prospects lie ahead,” Abbassian said.

Although food prices fell in the second half of last year, the Index average for the year was the highest average since FAO started measuring food prices in 1990. The previous highest mark came in 2008.