The FAO Food Price Index continued to decline in January, averaging 182.7 points for the month, or 1.9 percent below its December 2014 level. Lower prices reflect strong production expectations as FAO also raised its 2014 forecast for world cereal production to a record high and noted that early indications for crops in 2015 are favourable.
FAO's monthly food price index declined 1.7 percent in December to 188.6 points, led down by sugar and palm oil. The Food Price Index averaged 202 points for all of 2014, down 3.7 percent from 2013, marking the third consecutive annual decline.
Global staple food prices were broadly stable in November, as dairy and sugar prices dropped while vegetable oil and wheat and maize prices rose. The Food Price Index averaged 192.6 during the month, essentially unchanged from October and 6.4 percent below its level a year earlier.