The FAO Food Price Index fell 0.6% to 124.3 points in December 2025, reaching the lowest since August 2024. Vegetable oil prices edged down 0.2% to a six-month low, reflecting lower prices of soy, rapeseed and sunflower oils, which more than offset higher palm oil quotations. Also, meat cost declined 1.3% to a six-month low, with prices of bovine and poultry meats falling the most. Dairy cost tumbled 4.4%, a sixth consecutive monthly decline, driven by seasonally higher cream availability in Europe and stock accumulation following strong production earlier in the year. On the other hand, prices of cereals rose 1.7% as renewed concerns over Black Sea export flows lent support to wheat prices. Sugar cost increased 2.4% after three consecutive declines, due to a sharp drop in sugar production in Brazil, reflecting lower sugarcane crushing and a reduced use of sugarcane for sugar production. For 2025, the FAO Food Price Index averaged 127.2 points, 4.3% higher than the 2024 average.

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