Global Food Prices Edge Higher in February

The FAO Food Price Index increased to 125.3 index points in February 2026, the highest in four months, from an upwardly revised 124.2 in January. Prices of cereals rose 1.1% to the highest level in nine months, with wheat prices up 1.8%, underpinned by reports of frosts and heightened winterkill risks in parts of Europe and the US. Logistical disruptions in Russia and continuing tensions in the Black Sea region also contributed to the increase. Meat cost increased 0.8%, largely driven by higher world bovine and ovine meat prices. Vegetable oil prices jumped 3.3% to hit the highest since June 2022, driven by palm, soy and rapeseed oils. On the other hand, sugar cost tumbled 4.1% to the lowest level since October 2020 amid expectations of ample global supplies in the current season. Dairy prices were down 1.2% to the lowest level since January 2024, amid a continued fall in cheese prices, particularly in the EU.

The FAO Food Price Index slipped 0.4% to 123.9 points in January 2026, marking a fifth consecutive monthly decline and a fresh low level since August 2024. Sugar prices declined 1%, driven by expectations of increased global sugar supplies in the current season, largely underpinned by a significant production rebound anticipated in India and favourable prospects in Thailand. Also, dairy cost tumbled 5%, the seventh consecutive monthly decline, driven largely by lower world cheese and butter prices. Meat declined 0.4%, the lowest since May 2025, mainly reflecting lower pig meat prices, while quotations for bovine and ovine meats remained broadly stable. In contrast, cereal costs edged up 0.2%, reaching the highest since May 2025. Barley prices increased modestly and rice was up 1.8%, reflecting firmed demand while wheat prices declined 0.4%. Oil prices also jumped 2.1%, amid higher world prices of palm, soy and sunflower oils, which more than offset lower rapeseed oil quotations.

The FAO Food Price Index fell 0.6% to 124.3 points in December 2025, reaching the lowest since August 2024. Vegetable oil prices edged down 0.2% to a six-month low, reflecting lower prices of soy, rapeseed and sunflower oils, which more than offset higher palm oil quotations. Also, meat cost declined 1.3% to a six-month low, with prices of bovine and poultry meats falling the most. Dairy cost tumbled 4.4%, a sixth consecutive monthly decline, driven by seasonally higher cream availability in Europe and stock accumulation following strong production earlier in the year. On the other hand, prices of cereals rose 1.7% as renewed concerns over Black Sea export flows lent support to wheat prices. Sugar cost increased 2.4% after three consecutive declines, due to a sharp drop in sugar production in Brazil, reflecting lower sugarcane crushing and a reduced use of sugarcane for sugar production. For 2025, the FAO Food Price Index averaged 127.2 points, 4.3% higher than the 2024 average.