Four months of falling food prices slowed during November, the UN’s Food and Agriculture Organisation has revealed. The FAO Food Price Index in November remained virtually unchanged from its October level. However, the index was one percent higher than its level in November 2010.

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Having fallen 10 percent since reaching a peak in February this year, food prices have remained unchanged overall, though the prices of individual items have fluctuated in the index, which measures the price of a basket of staples across the world.

Cereal and sugar prices have fallen, due to a global abundance and falling wheat prices, though coarse grains remain unchanged and vegetable oil prices have risen, offsetting the easing cereal prices.  

The FAO said in a statement, "Contributing to the downward pressure on cereal prices is the significant upward revision of the 2011/2012 global cereal supply estimate as a result of better crop prospects in some Asian countries and the Russian Federation, and larger than anticipated stocks in the latter."

The report showed cereal production had reached a world record in 2011, standing at 2.323 billion tonnes, a 3.5 increase on last year. The FAO said this meant worldwide grain stocks could be replenished, as the crop is sufficient to cover the increase in demand for 2011/ 2012. The use of wheat in animal feed has risen 8 per cent globally, as feed prices continue to be high.

FAO analysis reveals that, although prices remain unchanged, irregular rains and unrest in parts of the world are affecting food security. The condition in the Horn of Africa remains critical, although humanitarian aid and favourable rains have eased the situation somewhat in Somalia. Some 18 million people in most severely drought-affected areas, including 4.6 million in Ethiopia, 4 million each in Somalia and the Sudan, 3.75 million in Kenya, 1.5 million in South Sudan and 180 000 in Djibouti are in need of emergency assistance.