Global food prices ease in December, but 2025 ends higher overall
The FAO Food Price Index averaged 124.3 points in December, down 0.6% from November and 2.3% lower than a year earlier. The index tracks monthly changes in international prices of a basket of globally traded food commodities.
Despite the December dip, the index averaged 127.2 points for the full year, 4.3% higher than in 2024, reflecting stronger prices for vegetable oils and dairy products over the course of 2025.
Cereal prices rise in December, but fall year-on-year
The cereal price index increased 1.7% month-on-month in December, supported by renewed concerns over Black Sea wheat export flows, strong global maize demand, higher ethanol production in Brazil and the United States, and firmer prices across all rice segments.
For 2025 as a whole, however, cereal prices averaged 4.9% below 2024 levels, marking the third consecutive annual decline and the lowest annual average since 2020.
Rice prices were particularly weak, with the all rice price index averaging 35.2% below its 2024 level due to ample supplies and strong competition among exporters.
Vegetable oils and dairy retreat in December
Vegetable oil prices fell 0.2% in December to a six-month low, as lower soy, rapeseed and sunflower oil prices offset gains in palm oil.
On an annual basis, the vegetable oil index averaged 17.1% higher in 2025 than in 2024, reaching a three-year high amid tight global supplies.
Dairy prices declined sharply in December, falling 4.4% month-on-month, driven largely by a drop in butter prices as cream availability increased seasonally in Europe.
Over the full year, dairy prices averaged 13.2% higher than in 2024, supported by strong global demand and constrained export availability earlier in the year.
Meat prices soften, sugar edges higher
The meat price index fell 1.3% from November but remained 3.4% above December 2024 levels. For 2025 overall, meat prices averaged 5.1% higher year-on-year, supported by strong import demand and uncertainty linked to animal disease outbreaks and geopolitical tensions.
Sugar prices rose 2.4% in December, driven mainly by reduced production in Brazil’s key southern growing regions.
Despite the monthly increase, sugar prices remained 24.0% below their December 2024 level and averaged 17.0% lower for the full year — the lowest annual average since 2020.