Global food prices fell for a fifth consecutive month in January, driven primarily by declines in dairy products, sugar and meat, according to the latest data released Friday by the Food and Agriculture Organization (FAO).
The FAO Food Price Index averaged 123.9 points in January 2026, down 0.4% from December and 0.6% compared with the same month a year earlier. The index, which tracks monthly changes in a basket of internationally traded food commodities, now stands 22.7% below its March 2022 peak recorded in the aftermath of Russia’s full-scale invasion of Ukraine.
Dairy prices posted the steepest monthly drop among major commodity groups, falling 5% compared with December. The decline was largely attributed to lower cheese and butter prices amid ample exportable supplies in Europe and the United States.
Meat prices edged down 0.4%, as a decrease in pork prices outweighed gains in poultry. Sugar prices also fell, declining 1% month-on-month and plunging 19.2% year-on-year, reflecting expectations of increased global supply.
Despite the broader downward trend, cereals and vegetable oils registered gains in January.
The FAO Cereals Price Index rose 0.2%, as stronger rice prices, linked to firm global demand, offset declines in other major grains.
Meanwhile, the Vegetable Oil Price Index climbed 2.1%, driven by higher prices for palm, soybean and sunflower oils. The increase was supported by slower production in Southeast Asia and tighter supplies in the Black Sea region. In contrast, rapeseed oil prices declined due to abundant European supplies.
In a separate report, the FAO raised its forecast for global cereal production in 2025 to a record 3.023 billion metric tons, citing improved wheat yields and stronger maize prospects.
The agency also projected that global cereal stocks would expand in the 2025/2026 season, lifting the world stocks-to-use ratio to 31.8%, the highest level since 2001, a signal of improving supply conditions in global grain markets.
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