Global food commodity prices saw a 2.1 per cent decline in 2024 compared to the previous year, as reported by the Food and Agriculture Organisation of the United Nations on Friday.
However, prices remain notably elevated compared to pre-COVID-19 levels.
The FAO’s overall Food Price Index averaged 122.0 points in 2024, showing a decrease of 2.6 points or 2.1 per cent from the 2023 average.
Despite the annual decline, food prices increased throughout 2024, with the index climbing from 117.6 points in January to 127.0 in December, marking a 6.7 per cent rise over the year.
This was primarily driven by higher prices in meat, dairy, and vegetable oils.
The FAO monitors global price fluctuations for a range of widely traded food commodities.
While prices slightly decreased between 2023 and 2024, they are still roughly 26 per cent higher than they were five years ago.
During the COVID-19 pandemic, global food prices initially dropped due to trade disruptions but later surged as inflation increased with the global economic recovery.
The onset of Russia’s invasion of Ukraine in February 2022 contributed to record price hikes, particularly in wheat, as both countries are key exporters.
However, consistent efforts to maintain shipments helped stabilize prices into early 2024.
The FAO attributed the decline in the average index value between 2023 and 2024 largely to notable decreases in cereal and sugar prices.
Cereal prices fell by 13.3 per cent in comparison to 2023, while the FAO’s Sugar Price Index dropped by 13.2 per cent.
These reductions were partially offset by a 9.4 per cent rise in the Vegetable Oil Price Index.
