FPI 7% Fall In 2012

The Food Price Index for December 2012 published by the FAO was 1.1% down on November averaging at 209. It was the third consecutive fall in the FPI and the main contributing factors were falls in the international prices of cereals, oils and fats. The fall meant that for the whole year of 2012 the index averaged 7% less than in 2011 at 212. The biggest falls in prices in 2012 were in sugar (17.1%), dairy products (14.5%) and oils (10.7%). Cereals (2.4%) and meats (1.1%) had much more modest falls in prices. The fears of a food crisis in July when food prices were rising were therefore allayed.