Global food prices fall for fifth straight month in January: FAO

World meals costs declined for a fifth consecutive month in January, pushed primarily by sharp falls in dairy, sugar, and meat costs, the Meals and Agriculture Group (FAO) of the United Nations mentioned on Friday, providing recent reduction to food-importing international locations grappling with inflation.

In line with the FAO, its meals worth index, which tracks month-to-month adjustments in a basket of worldwide traded meals commodities, averaged 123.9 factors in January, down 0.4 per cent from December and 0.6 per cent decrease than a 12 months earlier. The index now stands 22.7 per cent under its peak in March 2022, reached after Russia’s invasion of Ukraine disrupted world provide chains.

Amongst main commodity teams, dairy costs recorded the steepest decline, falling 5 per cent month-on-month, largely as a consequence of decrease worldwide costs of cheese and butter. Meat costs slipped 0.4 per cent, as a drop in pig meat costs outweighed good points in poultry.

Sugar costs fell 1 per cent from December and had been 19.2 per cent decrease than a 12 months in the past, reflecting expectations of upper world provides, the FAO mentioned.

In distinction, costs of cereals and vegetable oils edged increased. The FAO’s cereal worth index rose 0.2 per cent, as stronger rice costs linked to agency demand offset barely weaker costs for different main grains. The vegetable oil index climbed 2.1 per cent, supported by increased palm, soy and sunflower oil costs, regardless of a decline in rapeseed oil.

In a separate report, the FAO raised its forecast for world cereal manufacturing in 2025 to a file 3.023 billion metric tonnes, citing improved wheat yields and higher maize prospects. It additionally mentioned world cereal shares are anticipated to rise within the 2025–26 season, pushing the stocks-to-use ratio to 31.8 per cent, the best stage since 2001.