Global food prices have declined to their lowest levels in
four years, says a report from the United Nations.
Milk and sugar led the decline.
The strengthening of the U.S. dollar
against other currencies is reducing importers’ buying of meat, grains and
other food priced in U.S. dollars.
The sharp drop in oil prices has also
reduced demand for crops such as sugar and palm oil used to make biofuels.
“Political events and economic
conditions are still quite predominant,” Abdolreza Abbassian, a senior
economist at the Rome-based agency, said.
“In spite of declining prices, the
volatility has remained pretty strong.”
The Food and Agriculture Organization’s
measure of 73 food prices from around the globe slid 1.7 percent to 188.6
points in December, the lowest since August 2010.
The gauge averaged 202.1 points last
year, also the lowest since 2010, with the biggest price declines in grains,
dairy products and vegetable oils.
