Global food commodity prices saw a decline of 2.1 percent in 2024 compared to the previous year, according to a recent report by the Food and Agriculture Organization (FAO) of the United Nations. Despite this decrease, current prices remain considerably elevated above pre-COVID-19 levels.
The FAO’s Food Price Index averaged 122.0 points in 2024, marking a decrease of 2.6 points from the average of 2023. Although there was an annual decline, food prices surged throughout 2024, with the index climbing from 117.6 points in January to 127.0 in December, representing a 6.7 percent increase. This upward trend was primarily influenced by rising costs in meat, dairy, and vegetable oils.
Despite the slight reduction in prices from 2023 to 2024, the FAO emphasized that food prices remain approximately 26 percent higher than five years ago. The organization’s monthly tracking reveals fluctuations in international prices for widely traded food commodities.
Initially, global food prices fell during the COVID-19 pandemic due to trade disruptions but later escalated as inflation surged amid the economic recovery. The invasion of Ukraine by Russia in February 2022 caused a significant spike in prices, as both countries are key wheat exporters. However, stabilizing efforts to maintain shipments helped to reduce prices towards the start of 2024.
The FAO attributed the decline in the average price index to substantial reductions in cereal and sugar prices, which dropped by 13.3 percent and 13.2 percent respectively. These decreases were somewhat moderated by a 9.4 percent increase in the Vegetable Oil Price Index.
Stay tuned for more updates on global food prices and economic trends.
