U.N. Reports Drop in Food Prices

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ROME — World food prices dropped sharply at the end of 2011, according to the U.N. Food and Agriculture Organization (FAO).

Future predictions remain unclear. “International prices of many food commodities have declined in recent months, but given the uncertainties over the global economy, currency and energy markets, unpredictable prospects lie ahead,” said Abdolreza Abbassian, senior grains economist, FAO.

The FAO food price index fell 2.4 per cent in December 2011 from the previous month but recorded its highest average since the organization started measuring international food prices in 1990.

Sharp falls in international prices of cereals, sugars and oils due to bumper crops were listed as the reasons behind the decline as well as the slowing demand and a stronger U.S. dollar.

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