According to the United Nations Food and Agriculture Organization (FAO), global food prices dropped in January, led by lower sugar, vegetable oil, and meat prices.

The FAO’s Food Prices Index fell by 1.6% compared to December, though it remained 6.2% higher than a year earlier and 22% below its all-time high from 2022.

Three out of five sub-indexes declined in January. Sugar prices dropped by 6.8%, reaching their lowest level since October 2022, due to strong crop and export forecasts in major producers like Brazil and India.

Vegetable oil prices fell by 5.6%, driven by reduced demand for palm and rapeseed oil. Meat prices declined by 1.4%, as lower ovine, pork, and poultry prices offset higher demand for beef.

Conversely, dairy prices rose significantly, while grains and cereals recorded a slight increase. The FAO report reflects a mixed trend in global food markets as supply and demand dynamics continue to shift.