The FAO Food Price Index declined to a 55-month low in February, dropping 1.0 percent from January and 14 percent below its level a year earlier. Lower prices for cereals, meat and especially sugar more than offset an increase in milk and palm oil prices. FAO also raised its 2014 crop output forecast, indicating robust supply levels.
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.