Rome: The Food and Agriculture Organization of the United Nations (FAO) has projected a significant increase in global food prices, with the food price index expected to rise by 4.3 percent in 2025. This information was detailed in a report released today by the FAO.

According to Lao News Agency, the report highlights a year-on-year increase of over 4.0 percent in the global food price index, which is anticipated to average 127.2 points in 2025. This rise is attributed to increases in global prices for vegetable oils and dairy products, which have counterbalanced declines in cereal and sugar prices.

Throughout 2025, the cereal price index is expected to average 4.9 percent below its 2024 level, marking the third consecutive year of decline and the lowest average since 2020. In contrast, vegetable oil prices are projected to see a year-on-year increase of 17.1 percent, reaching their highest levels since 2022 due to global supply shortages.

Meat prices are forecasted to average 5.1 percent above their 2024 levels, driven by strong global import demand and increased market uncertainty related to animal disease outbreaks and geopolitical tensions. Similarly, dairy prices are expected to average 13.2 percent above their 2024 levels, spurred by robust global import demand and shortages in exportable supplies.