World food prices continued to rise in December

According to the Food and Agriculture Organization (FAO) of the United Nations, world food prices rose for the third consecutive month in December, as a strong rally in vegetable oil prices drove the FAO Food Price Index to its highest level in five years. The FAO Food Price Index averaged 181.7 points during the month, a 2.5% increase from November and the highest level since December 2014.

For 2019, the index—which tracks monthly changes in the international prices of commonly-traded food commodities—averaged 171.5 points, some 1.8% higher than in 2018 but still 25% below its peak in 2011. Here’s a closer look at the commodity pricing in December:

• Vegetable Oil Price Index: Rose 9.4% from November, increasing for the sixth consecutive month.
• Sugar Price Index: Rose 4.8% from November. Driven in part by rising crude oil prices, which encouraged Brazil’s sugar mills to use more sugarcane supplies to produce ethanol, leading to reduced sugar availability in the global market.
• Dairy Price Index: Increase by 3.3% during the month. This was led by cheese prices, which were up by almost 8% amid tighter export availabilities from the European Union and Oceania.
• Cereal Price Index: Up 1.4%, driven mainly by wheat prices amid accelerating import demand from China and logistical problems in France due to continued protests in the country.
• Meat Price Index: Almost unchanged from its November value.

Press release