The UN Food and Agriculture Organization’s index of global food commodity prices eased again in January, led by lower prices for grains and meat, and is down 10.4% from a year ago.
The FAO Food Price Index fell by 1% in January to 118 points as commodity prices continue to decline from the spike in 2022, when the index averaged 144.7.
The index for grains dropped 2.2% in January and is down 18.6% from a year ago. “Global wheat export prices declined in January driven by strong competition among exporters and the arrival of recently harvested supplies in the southern hemisphere countries,” and corn prices “fell sharply, reflecting improved crop conditions and the start of the harvest in Argentina and larger supplies in the United States,” FAO said Friday.
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The index for meat prices fell 1.4% last month, reflecting strong supplies of beef, pork and poultry, FAO said.
Dairy prices have dropped nearly 18% from a year ago although they were relatively unchanged in January, as higher prices for butter and whole milk powder offset price declines for cheese and skim milk powder.
The price index for vegetable oils rose 0.1% in January, despite price declines for soybean and rapeseed (canola) oil, but the index was still 12.8% below its level a year earlier.
Sugar is the one major commodity that continues to buck the overall deflationary trend. The sugar index rose 0.8% in January and is up nearly 16% from last year.
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