Global food prices rise by 4.3%

International food prices edged down slightly in December. No major shock, no break in the trend, but a clear movement after earlier increases. At the same time, the annual average shows that 2025 as a whole was more expensive than 2024. This is evident from the latest figures of the FAO Food Price Index. Dairy products and vegetable oils in particular kept the index elevated, despite price pressure toward the end of the year.

Decline in December, higher annual average

In December 2025, the FAO Food Price Index stood at 124.3 points. That is 0.6 percent lower than in November and 2.3 percent below the level of a year earlier. Compared with the peak of March 2022, the index was even 22.4 percent lower. Over the full year, the picture was different. The average for 2025 came in at 127.2 points, an increase of 4.3 percent compared with 2024. Higher prices for dairy products and vegetable oils outweighed declines in other commodity groups.

Grains and sugar weigh on the annual result

Grain prices showed a slight increase in December. The FAO Cereal Price Index rose by 1.7 percent, partly due to concerns over grain exports through the Black Sea region. Wheat prices found support, while maize benefited from strong import demand and higher ethanol production in Brazil and the United States. Rice prices also increased across all market segments. Even so, the annual average for grains was 4.9 percent lower than in 2024. This marked the lowest level since 2020. The FAO All Rice Price Index even fell by 35.2 percent over the whole of 2025. Sugar prices rebounded in December, but on an annual basis remained 17.0 percent lower than a year earlier.

Dairy and oils keep prices elevated

Vegetable oil prices moved slightly lower in December, but the annual figure remained substantially higher. In 2025, the FAO Vegetable Oil Price Index averaged 17.1 percent above the 2024 level. Dairy showed a similar pattern. In December, the FAO Dairy Price Index declined by 4.4 percent, mainly due to lower butter prices. Over the full year, however, the index ended 13.2 percent higher. Strong import demand and limited export availability earlier in the year played a clear role.

Fao.org