Global Food Prices Dip 2% in 2024: FAO Report
Global food commodity prices dropped by 2.1 percent in 2024 compared to the previous year, as reported by the Food and Agriculture Organization (FAO) of the United Nations.
The FAO Food Price Index averaged 122.0 points for the year, reflecting a decline of 2.6 points from 2023. However, prices rose throughout the year, increasing from 117.6 points in January to 127.0 points in December, marking a 6.7% rise over the same month in 2023. Meat, dairy, and vegetable oils were the primary contributors to this increase.
Despite the annual decline, food prices remain substantially higher than pre-pandemic levels, approximately 26% above those recorded five years ago. The initial drop in prices during the COVID-19 pandemic was followed by a sharp rise as inflation surged during the global economic recovery.
Additionally, the Russia-Ukraine conflict, which began in early 2022, further disrupted global food markets, causing record price hikes as both nations are key wheat exporters. Although international efforts helped stabilize shipments, prices remained volatile into 2024.
The annual decrease in the FAO index was largely driven by significant reductions in cereal and sugar prices, which fell by 13.3% and 13.2%, respectively, compared to 2023. These declines were partially counterbalanced by a 9.4% increase in the vegetable oil price index. The FAO’s tracking of global commodity prices highlights ongoing volatility in food markets amidst geopolitical and economic challenges.
