In the world of food commodities, a significant shift occurred last December. Global food prices fell by approximately ten percent compared to the beginning of the year. This was revealed by the price development index, which the United Nations Food and Agriculture Organization (FAO) reported.
The decrease in prices was not limited to a single sector. It spanned various food items, including meat, dairy products, sugar, and vegetable oil. This price decline was also observed in December, indicating a trend that could carry over into the new year.
The index for December fell to 118.5 points, making it 1.8 points or 1.5 percent lower than in November. The decrease in the prices of sugar, vegetable oils, and meat outweighed the increase in the prices of dairy products and cereals.
By the end of the year, the price index in December was 13.3 points or 10.1 percent lower compared to the same period the previous year.
When considering the entire year, the value of the price index was 124.0 points. This figure was 19.7 points or 13.7 percent lower than its average value in 2022. The FAO index monitors the prices of cereals, vegetable oils, dairy products, meat, and sugar on international markets.
This significant decrease in global food prices is an important observation. It could have far-reaching effects on various sectors, from agriculture to retail. As we move forward into the new year, all eyes will be on these trends to see if they continue.