January 13, 2012

December's global food prices fall 2.4%

With the combined factors of bumper yield, sluggish demand and a stronger US dollar, food prices dropped 2.4% worldwide in December compared with November, said the Rome-based UN Food and Agriculture Organization on Thursday (Jan 12).

The World Food Price Index, which tracks monthly price developments in a basket of agricultural commodities, slid to 211 in December, down from 216 in November and 27 points below its February 2011 peak.

In 2011, the index averaged 228 points, up 23% from 2010 and above the previous high of 200 points reached in 2008.

FAO senior economist Abdolreza Abbassian said that it was difficult to predict any price trends for the coming months.

"International prices of many food commodities have declined in recent months, but given the uncertainties over the global economy, currency and energy markets, unpredictable prospects lie ahead," he said.