Adjusted for inflation, FAO’s Food Price Index (FPI) fell half a percent in January but was still up 6.1 percent YOY. In nominal terms (unadjusted for inflation), prices rose 1.1 percent in January, up 19.5 percent YOY.

The decline in the real FPI came on a drop for three of the five subindexes: sugar, cereals, and meat, partly offset by continued appreciation for edible oils and minor gains for dairy prices.

Source: FAO, McKeany-Flavell

The cereals subindex fell to a three-month low in January on weakness in wheat prices on additional supply from Southern Hemisphere origins—sustained demand and supply concerns prevented a more significant retracement. Corn and sorghum, however, still saw higher prices.

After two down months, the vegetable oils subindex rose in January. Prices were up for most major oils, including soybean, palm oil, canola, and sunflower. FAO cited strong India imports soybean oil demand and concerns over Indonesian palm oil availability. Unadjusted for inflation, January saw a record high for the oils subindex.

The sugar subindex fell 4.7 percent in January to a six-month low.

FAO Food Price Index & Vegetable Oils Subindex (adjusted for inflation)

Source: FAO
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