The global food commodity prices experienced a decline of 2.1 percent in 2024 compared to the previous year, according to the Food and Agriculture Organization (FAO).
Despite this drop, food prices remain significantly higher than pre-COVID-19 pandemic levels. The FAO’s Food Price Index averaged 122.0 points in 2024, which is 2.6 points lower than the average value in 2023.
However, a closer look at the data reveals that food prices actually increased over the course of 2024. The index rose from 117.6 points in January to 127.0 in December, representing a 6.7 percent increase from December 2023 to 2024. This surge was primarily driven by rising prices of meat, dairy, and food oils. Compared to five years ago, food prices are still approximately 26 percent higher.
The FAO’s Food Price Index tracks changes in the international prices of globally traded commodities.
The COVID-19 pandemic initially led to a decline in food prices, but they later rebounded amid rising inflation as the global economy recovered. The Russia-Ukraine conflict in 2022 caused food prices to spike, but efforts to ensure uninterrupted shipments led to prices easing lower until the beginning of 2024.
The decline in the average value of the index between 2023 and 2024 was mainly attributed to decreases in cereals and sugar prices.
Cereals prices dropped by 13.3 percent, while the FAO’s sugar price index fell by 13.2 percent. These decreases were partially offset by a 9.4 percent rise in the vegetable oil price index.
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