The FAO Food Price Index fell to 118.5 in December 2023, the lowest since February 2021, from a downwardly revised 120.3 in November. Cost of vegetable oils dropped 1.4% due to lower prices across palm, soy, rapeseed and sunflower seed oils. Sugar plunged 16.6% to its lowest level in nine months, driven by the strong production in Brazil. Also, meat prices dropped 1% to the lowest since May 2021, as pig meat prices fell due to persistent weak import demand from Asia. On the other hand, cost of cereals went up 1.5% as wheat export prices increased for the first time in five months, supported by weather-related logistical disruptions and tensions in the Black Sea. Also, dairy prices increased 1.6% due to higher price quotations for butter, whole milk powder and cheese. Considering 2023, the Food Price Index declined 13.7% to 124 index points, the biggest drop since 2015, with declines seen for vegetable oils (-32.7%), sugar (-26.7%), dairy (-16.5%), cereals (-15.4%) and meat (-3.5%).
