Global Food Prices Fall for Four Consecutive Months... Lowest Since January Last Year

FAO Index Hits Lowest Level Since Early Last Year
Dairy and Meat Prices Fall, Grains and Sugar Rise
Annual Index Up... Domestic Inflation Remains High

Global food prices have declined for four consecutive months, reaching their lowest level since early last year. However, on an annual basis, the upward trend has continued, and consumer prices in major countries, including South Korea, are still rising, making it difficult for consumers to feel any relief from inflation.

The Food and Agriculture Organization (FAO) of the United Nations announced on the 9th (local time) that the global food price index (2014?2016 average price set at 100) stood at 124.3 as of December last year, down 0.6% from the previous month (125.1), marking the lowest level since January last year. The meat price index fell by 1.3% in the same month. The photo shows citizens shopping at the meat section of a large supermarket in downtown Seoul on the 7th. Photo by Yonhap News Agency

The Food and Agriculture Organization (FAO) of the United Nations announced on the 9th (local time) that the global Food Price Index stood at 124.3 as of December last year (2014-2016 average = 100), down 0.6% from the previous month (125.1). This is the lowest level since January last year, and the index has fallen for four consecutive months since September. It is also 2.3% lower than the same month of the previous year.

By category, prices for dairy products, meat, and vegetable oils declined, while prices for sugar and grains increased.

In December last year, the Dairy Price Index plunged by 4.4% compared to the previous month. Butter prices dropped significantly, and whole milk powder prices also fell. Skimmed milk powder and cheese prices declined slightly as well.

Graph of the Food Price Index by Year. Although there was a downward trend on a monthly basis, the annual trend continued to rise. The annual average global Food Price Index in 2025 was 127.2, an increase of 4.3% compared to the previous year.

The Meat Price Index fell by 1.3% in the same month. The decline was relatively steep for beef and chicken, and overall, all categories showed weakness. However, international beef prices remain significantly higher than a year ago due to strong demand.

The Vegetable Oil Price Index was 164.6, down 0.2% from the previous month. In contrast, the Grain Price Index rose by 1.7%, driven by heightened tensions in the Black Sea region that pushed wheat prices higher. The Sugar Price Index also increased by 2.1% due to reduced sugar production in southern Brazil.

Although the monthly trend showed a decline, the annual trend continued to rise. The annual average global Food Price Index in 2025 was 127.2, an increase of 4.3% compared to the previous year. Prices for vegetable oils and dairy products rose sharply, and meat prices also increased. In contrast, sugar and grains declined on an annual basis.

Unlike the stabilization of global food prices, domestic prices in South Korea continue to rise. According to national statistics, South Korea’s Consumer Price Index in December last year was 117.57, up 2.3% from the same month of the previous year. On an annual basis, the Consumer Price Index also increased by 2.1% compared to the previous year.