January 20, 2012

The food price index surged through 2011, rising 23% on 2010 to average 228 points. Despite prices easing through the second half of 2011, the average price of 2011 was the highest level in both nominal and real terms since the FAO began measuring international food prices in 1990.

While the meat price index eased slightly in November, it still sits 8% higher on-year, to 179 points. The slight fall on last month coincides with a fall in pigmeat and sheepmeat prices. However, poultry and bovine meat prices recorded mild gains over this monthly period. On an annual basis, meat prices in 2011 averaged 16% higher than a year earlier, with all meat types, notably ovine meat, recording price increases throughout 2011.

The four other categories all fell in December, with the sugar price (327 points), oils price (228 points), cereals price (218 points) and dairy price (202 points) indexes declining 18%, 14%, 8% and 3% on-year, respectively. Driving the falls on November and last year was sharp declines in global cereals, sugar and oil prices, while slower demand put downward pressure on commodity prices. Despite these declines, all four categories averaged significantly higher prices through compared with the previous year.