Global Food Prices Ease Further in January

Global food prices continued to fall at the start of 2026, with the FAO Food Price Index dropping 0.4% in January to 123.9 points. This marked the fifth consecutive monthly decline and the lowest level since August 2024, signaling a further easing in global food inflation pressures.

The latest decline was driven mainly by lower prices across several key categories:

• Sugar fell 1% on expectations of improved supply. Stronger output prospects in India, combined with favorable growing conditions in Thailand, have eased earlier concerns about tight availability.
• Dairy prices recorded the steepest drop, down 5% on the month and extending a seven-month losing streak. Cheaper cheese and butter prices reflected ample export supply and softer demand from major importing regions.
• Meat prices edged 0.4% lower, reaching their weakest level since May 2025. The decline was led by lower pig meat prices, while bovine and ovine meat prices remained broadly stable.

Mixed Signals Across Grains and Oils

Not all food categories moved lower. Cereal prices rose modestly by 0.2%, reaching their highest level since May 2025. The increase reflected diverging trends within the group:

• Barley prices posted small gains.
• Rice climbed 1.8% on firm import demand.
• Wheat slipped 0.4%, weighed down by comfortable global stocks and steady export flows.

Vegetable oil prices moved higher as well, rising 2.1% in January. Gains in palm, soy, and sunflower oil prices more than offset declines in rapeseed oil. The increase was supported by stronger import demand and renewed concerns about production prospects in key producing regions.

Easing Pressures With Exceptions

Overall, the January FAO report points to a continued moderation in global food prices, offering some relief to consumers and policymakers. However, the strength seen in cereals and vegetable oils highlights that price pressures remain uneven across markets. As supply conditions and demand patterns evolve, these segments are likely to stay in focus in the months ahead, even as the broader food inflation trend continues to cool.