ROME (AP) — A U.N. agency says food prices dropped sharply at the end of 2011 but that uncertainties over the global economy makes predictions for the future unclear.
The Rome-based U.N. Food and Agriculture Organization said in its report Thursday that the decline was driven by sharp falls in international prices of cereals, sugar and oils due to bumper crops coupled with slowing demand and a stronger U.S. dollar.
Its price index fell 2.4 percent in December from the previous month.
However, its price index for the year recorded its highest average since the FAO starting measuring international food prices in 1990.