World food prices fell slightly in September 2025, according to the Food and Agriculture Organization of the United Nations (FAO). The apparent fall in the prices of sugar and dairy products mitigated the impact of higher meat prices.

The FAO Food Price Index which tracks the monthly changes in international prices of commonly traded food commodities averaged 128.8 points in September down from 129.7 points in August.

Overall Global Food Price Trend

Index	August 2025	September 2025	Monthly Change	Year-on-Year Change
FAO Food Price Index	129.7	128.8	▼ 0.9	▲ +3.4%
Sugar Index	—	—	▼ 4.1%	Lowest since March 2021
Dairy Index	—	—	▼ 2.6%	Driven by butter price drop
Cereal Index	—	—	▼ 0.6%	Wheat and maize prices fell
Meat Index	—	—	▲ Record high	Continued increase

Sugar Prices Fall Sharply

According to the FAO, global sugar prices fell by 4.1 percent, the lowest level since March 2021. This decline was driven by:

Higher-than-expected sugar production in Brazil
Improved crop outlook in India and Thailand
Increased global supply easing market pressure

Dairy Products

The Dairy Price Index fell by 2.6% mainly due to a drop in butter prices. The FAO said that due to the expectations of increasing dairy production in Oceania (Australia and New Zealand), the supply in the global market has improved.

Cereal Prices Also Weakened

The Cereal Price Index recorded a 0.6% decline.

Wheat prices fell for the third consecutive month due to strong global harvests and weak international demand.
Maize (corn) prices also dropped largely because Argentina temporarily suspended its export tax increasing exports.

Meat Prices Hit Record High

On the contrary, further increases were seen in meat prices which according to the FAO have reached historic levels. Among the reasons for the increase in meat prices:

An increase in the cost of processing
The low availability of production
The increase in global demand

Global Context and Analysis

Although global food prices eased slightly in September, FAO reports they remain 3.4% higher than in 2024. This indicates that the global food market has not fully escaped inflationary pressure.

It’s worth noting that after the Russia–Ukraine war in March 2022, global food prices hit record highs, the current level is still about 20% lower than that historic peak.

Experts Views

Experts suggest that declining sugar and dairy prices have provided temporary relief but rising meat and energy costs could push global inflation higher in the coming months.

According to international economic analysts:

“If sugar production remains strong in Brazil and India further declines are expected. However, rising meat and feed costs could balance out this deflationary effect.”