The United Nations' global index for tracking food prices fell 1.9 percent in December after hitting an all-time high in 2022 amid drought, war, pandemic, and supply chain challenges.
The Food and Agriculture Organization of the United Nations (FAO) Food Price Index, which tracks commonly traded food commodities, averaged 143.7 points in 2022. That is down one percent from the number one year ago, but 14.3 percent above the average value in 2021.
Over that period, essential goods have seen sizable price drops. The price of vegetable oil, for example, was down 6.7 percent from November, hitting their lowest levels since before the war in Ukraine. Cereal prices, meanwhile, were down 1.9 percent from November, while meat was down 1.2 percent.
While welcoming the improvement, the United Nation is urging nations to stay vigilant to avoid the kind of global food shortages that come with higher prices.
"Calmer food commodity prices are welcome after two very volatile years," said FAO Chief Economist Maximo Torero in a news release. "It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs, and with prices of rice increasing, and still many risks associated with future supplies"
One exception to the steady price declines: dairy products. The FAO Dairy Price Index was up 1.2 percent in December, mostly due to higher international cheese prices.
A legislative package to end the government shutdown appears on track. A handful of Senate Democrats joined with Republicans to advance the bill after what's become a deepening disruption of federal programs and services. But hurdles remain. Senators are hopeful they can pass the package as soon as Monday and send it to the House. What’s in and out of the bipartisan deal has drawn criticism and leaves few senators fully satisfied. The legislation includes funding for SNAP food aid and other programs while ensuring backpay for furloughed federal workers. But it fails to fund expiring health care subsidies Democrats have been fighting for, pushing that debate off for a vote next month.
Sabrina Siddiqui, National Politics Reporter at The Wall Street Journal, joins to break down the SNAP funding delays and the human cost of the ongoing shutdown.
Arguments at the Supreme Court have concluded for the day as the justices consider President Donald Trump's sweeping unilateral tariffs in a trillion-dollar test of executive power.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
The Federal Reserve cut its key interest rate Wednesday for a second time this year as it seeks to shore up economic growth and hiring even as inflation stays elevated. The move comes amid a fraught time for the central bank, with hiring sluggish and yet inflation stuck above the Fed’s 2% target. Compounding its challenges, the central bank is navigating without much of the economic data it typically relies on from the government. The Fed has signaled it may reduce its key rate again in December but the data drought raises the uncertainty around its next moves. Fed Chair Jerome Powell told reporters that there were “strongly differing views” at the central bank's policy meeting about to proceed going forward.
