FAO Food Price Index Declines for Fourth Straight Month in December
The FAO Food Price Index fell to 124.3 points in December 2025, marking a fourth consecutive monthly decline. Despite this trend, the annual average for 2025 was 127.2 points, a 4.3% increase from 2024, driven by early-year supply constraints in vegetable oils and dairy.
Insights:
The FAO Food Price Index dropped to 124.3 points in December 2025, marking the fourth consecutive month of decline. This decrease from 125.1 in November represents a 2.3% fall compared to December 2024. Despite this downward trend, the full-year 2025 index averaged 127.2 points, reflecting a 4.3% rise from 2024. This paradox highlights the tension between short-term relief and the structural support that kept prices elevated throughout the year.
