A comforting news has emerged for billions of citizens worldwide, including India, who are enduring the brunt of global inflation. According to the latest report by the United Nations Food and Agriculture Organization (FAO), global food prices have declined for the fifth consecutive month. The drop in prices of essential food items such as milk, sugar, and meat has brought some stability to the international market. According to the FAO report, the FAO Food Price Index, which reflects the monthly fluctuations in global food prices, averaged 123.9 points in January 2026. This index is 0.4 percent lower compared to December 2025 and 0.6 percent lower compared to the same period last year. This indicates that global food inflation is somewhat coming under control.
According to the report, the prices of milk, sugar, and meat are consistently declining. The increased supply in the international market and relatively stable demand have reduced the pressure on the prices of these commodities. This can directly benefit food-importing countries, especially developing economies like India. However, not all food prices have fallen. In January 2026, there was a slight increase of 0.2 percent in grain prices, with the grain price index averaging 107.5 points. The prices of wheat and corn have slightly decreased. According to the FAO, concerns related to weather in Russia and the United States have not significantly impacted the market, as the global wheat stock is sufficient.
Due to expected good production in Argentina and Australia as well as high global stocks, grain prices have been helped to remain under control. However, a 1.8% increase in rice prices has been recorded. The FAO has clarified that the market has strengthened particularly due to the increasing demand for aromatic rice. This is likely to increase pressure on rice prices in Asian countries. Meanwhile, this decline could be significant for India. The global prices of milk, sugar, and meat have decreased, which may lead to a reduction in import costs.
Particularly, the increase in sugar production by India, strong domestic supply, and improved export opportunities can benefit farmers and the sugar industry. According to experts, although inflation has been somewhat curbed due to falling food prices for the fifth consecutive month, the direction of prices in the coming months will depend on weather, geopolitical tensions, and global demand. Therefore, although citizens have received temporary relief, the threat of inflation is not completely averted, it is being expressed.