In December 2021, the FAO Food Price Index fell by 0.9 percent from the previous month, with vegetable oils and sugar prices both seeing significant declines. However, in 2021 overall, the Index reached a 10-year high and was up by 28.1 percent above 2020 levels.
The Cereal Price Index fell 0.6 percent in December, driven by falling wheat and rice prices. Maize prices rose due to strong demand and continuing dry conditions in Brazil. Overall in 2021, cereal prices rose by 27.2 percent from 2020 to reach the highest levels seen since 2012. Maize and wheat prices rose by 44.1 and 31.3 percent, respectively, with the increases driven by strong demand and tight supplies among the world’s major exporters. Rice prices declined by 4 percent in 2021 compared to the previous year due to ample supplies.
The Vegetable Oil Price Index declined by 3.3 percent in December. Sunflower and palm oil prices drove the decline, while soy and rapeseed oil prices remained steady at high levels. In 2021, the Vegetable Oil Price Index rose by 65.8 percent from 2020 to reach a record high.
The Dairy Price Index rose by 1.8 percent from the previous month and by 17.4 percent from December 2020. The Meat Price Index remained steady month-on-month but rose by 17.4 percent from the previous year. The Sugar Price Index declined in December by 3.1 percent to reach a five-month low; sugar prices in 2021 overall rose by 37.5 percent.