International food prices fell by 7 per cent over the course of last year, reducing the risk of food shortages in developing countries, the United Nations' Food and Agriculture Organization (FAO) said Thursday.
Global food prices had soared by about 10 per cent from June to July, increasing the threat of hunger for millions of the world's poor.
But on Thursday FAO said its Food Price Index had fallen to 209 points in December, the index's third consecutive monthly contraction. In November it stood at 211.
Over the whole of 2012, the index averaged 212, 7 per cent less than in 2011. The sharpest year-on-year drops were registered for sugar (17.1 per cent), dairy products (14.5 per cent) and oils (10.7 per cent), the Rome-based agency said.
"The result marks a reversal from the situation last July, when sharply rising prices prompted fears of a new food crisis," said FAO Assistant Director General Jomo Sundaram.
He said that flagging demand due to a stagnant international economy and measures introduced in 2011 by the Group of 20 major economies to improve coordination and transparency in food markets had helped calm prices.
The last major spike in international food prices, caused by an escalation in grain and oil prices, as well shortages in global food stockpiles, took place in 2007-2008.