Commodities Buzz: FAO Food Price Index rises around 7% on year

The FAO Food Price Index (FFPI) averaged 130.1 points in August 2025, virtually unchanged from the revised July level of 130.0 points. Declines in the cereal and dairy price indices were offset by increases in the indices for meat, sugar and vegetable oils. Overall, the FFPI was 8.4 points (6.9 percent) higher than in August 2024 but remained 30.1 points (18.8 percent) below its peak reached in March 2022.

The FAO Cereal Price Index averaged 105.6 points in August, down 0.8 points (0.8 percent) from July and 4.5 points (4.1 percent) from August 2024. International wheat prices declined month-on-month, reflecting ample global supplies and subdued import demand, especially from major buyers in Asia and North Africa.

The FAO Vegetable Oil Price Index averaged 169.1 points in August, up 2.3 points (1.4 percent) month-on-month, reaching its highest level since July 2022. The increase was driven by higher quotations for palm, sunflower and rapeseed oils, more than offsetting a slight decline in soyoil values.

The FAO Meat Price Index averaged 128.0 points in August, up 0.7 points (0.6 percent) from July and 5.9 points (4.9 percent) from a year ago, marking a new all-time high.

The FAO Dairy Price Index averaged 152.6 points in August 2025, down 1.3 percent from July, marking the second consecutive monthly decline while remaining 16.2 percent above its level a year-earlier. The decrease reflected lower international prices for butter, cheese, and whole milk powder (WMP), outweighing higher skim milk powder (SMP) quotations.

The FAO Sugar Price Index averaged 103.6 points in August, up slightly by 0.3 points (0.2 percent) from July after five consecutive monthly declines, but still down 10.3 points (9.0 percent) from its level a year ago.

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