Index Performance in July 2025
FAO Food Price Index Rises in July 2025: The FAO Food Price Index (FFPI) stood at 130.1 points in July 2025, showing a 1.6% rise compared to June. This increase was mainly led by higher meat and vegetable oil prices. However, the index remains 18.8% lower than its peak in March 2022 while being 7.6% higher than the same month in 2024.
Static GK fact: The Food and Agriculture Organization (FAO) is a UN body established in 1945 with its headquarters in Rome, Italy.
Purpose of the Index
The FFPI tracks monthly price movements for internationally traded food commodities. It is calculated as a weighted average of five categories – cereals, dairy, meat, vegetable oils, and sugar – with weights based on export data from 2014–2016. Policymakers and market analysts use it to assess global food price trends and stability.
Trends in Cereal Prices
The Cereal Price Index averaged 106.5 points, down 0.8% from June. Wheat and sorghum became cheaper due to fresh harvests in the northern hemisphere and sufficient stocks. On the other hand, maize and barley registered slight gains due to dry weather in parts of Eastern Europe and reduced shipments from Argentina and Brazil.
Static GK fact: India ranks among the world’s largest wheat producers, along with China, Russia, and the USA.
Sharp Rise in Vegetable Oil Prices
The Vegetable Oil Price Index rose 7.1% to 166.8 points, marking its highest level in three years. Palm oil prices strengthened due to competitive pricing, soy oil gained from projected biofuel demand in the Americas, and sunflower oil increased amid reduced supply from the Black Sea region. Rapeseed oil prices eased following fresh harvest arrivals in Europe.
Meat Prices Reach Record Levels
The Meat Price Index touched 127.3 points, a new all-time high, up 1.2% from June. Prices of bovine and ovine meat rose sharply due to strong demand from China, the USA, and Brazil. Poultry prices saw a mild rise as Brazil recovered from avian influenza. Pig meat prices, however, fell in the EU due to oversupply and weaker consumption.
Dairy and Sugar Price Changes
The Dairy Price Index slipped marginally by 0.1% to 155.3 points. Butter and milk powder prices declined on ample supply and lower demand from Asia, while cheese prices increased due to steady demand in Asia and the Near East. The Sugar Price Index dropped by 0.2% to 103.3 points, marking its fifth monthly fall. Higher output forecasts for Brazil and Thailand in the 2025/26 season weighed on prices despite a slight recovery in import demand.
Overall Impact
The July 2025 FFPI trends highlight mixed market movements – strong gains in meat and vegetable oils, and declines in cereals, dairy, and sugar. These shifts influence food security, global trade, and inflation in food-importing nations, making continuous monitoring essential for informed decision-making.
Static Usthadian Current Affairs Table
FAO Food Price Index Rises in July 2025:
| Fact | Detail |
| FAO Headquarters | Rome, Italy |
| FAO Founded | 1945 |
| July 2025 FFPI | 130.1 points |
| Change from June 2025 | +1.6% |
| Change from July 2024 | +7.6% |
| Peak FFPI | March 2022 |
| Commodity groups in FFPI | Five |
| Highest Index in July 2025 | Vegetable Oil Price Index (166.8 points) |
| Lowest Index in July 2025 | Cereal Price Index (106.5 points) |
| Main factors for rise | Meat and vegetable oil demand |
