The FAO Food Price Index (FFPI) recorded a decline in May, with the drop attributed to lower global prices for cereals, vegetable oils, and sugar, according to the latest report from Food and Agriculture Organization of the United Nations (FAO).
The FFPI averaged 127.7 points in May 2025, down 1.0 points (0.8 percent) from April. While the price indices for dairy products and meat increased, they were more than offset by declines in those for cereals, sugar and vegetable oils. Overall, the FFPI was 7.2 points (6.0 percent) higher than its level last year but remained 32.6 points (20.3 percent) below its peak reached in March 2022.
The FAO Sugar Price Index averaged 109.4 points in May, down 2.9 points (2.6 percent) from April, marking the third consecutive monthly decline, and 7.7 points (6.6 percent) below its level in May 2024. The drop was driven by weaker global demand for sugar, amid concerns over the uncertain global economic outlook and its potential impact on demand from the beverage and food processing industries. Additionally, early forecasts of a likely recovery in global sugar production in 2025/26, supported by expectations of larger outputs in India and Thailand following an early onset of the monsoon season, exerted further downward pressure on prices.
The FAO Cereal Price Index averaged 109.0 points in May, down 2.0 points (1.8 percent) from April and 9.7 points (8.2 percent) below its May 2024 level. Global maize prices declined sharply during the month, pressured by firm competition and increasing seasonal availability from ongoing harvests in Argentina and Brazil, with harvesting in both countries ahead of last year’s pace by the end of May. Expectations of a record 2025 maize harvest in the United States of America further contributed to the downward pressure on prices. Among other coarse grains, world prices of sorghum and barley also dropped. International wheat prices declined as well, albeit more moderately, due to subdued global demand and improving crop conditions in the northern hemisphere. Rainfall towards the end of the month reduced the risk of drought in parts of Europe, the Black Sea region and the United States of America. By contrast, the FAO All Rice Price Index increased by 1.4 percent in May, driven by firm demand for fragrant varieties and higher prices of Indica rice, partly influenced by currency appreciations against the United States dollar in some exporting countries.
