Global food prices decline, but still 26 per cent above 2019 levels

LONDON: World food commodity prices declined by 2.1 per cent in 2024 compared to the previous year, the FAO said on Friday, but they remain considerably higher than before the Covid-19 pandemic.

The UN Food and Agriculture Organization’s overall Food Price Index averaged 122.0 points — 2.6 points, or 2.1 per cent, lower than the average value in 2023. However, food prices increased over the course of the year, with the index rising from 117.6 points in January to 127.0 points in December.

The index climbed by 6.7 per cent from December 2023 to December 2024, with meat, dairy, and food oils contributing to the increase.

The United Nations’ food agency tracks monthly global changes in the international prices of a set of globally traded commodities. Food prices also remain considerably higher — roughly 26 per cent — than they were five years ago.

The disruption to global trade during the Covid-19 pandemic initially saw food prices dip, but they later surged as inflation rose amid the global economic rebound.

Russia’s invasion of Ukraine in February 2022 sent prices soaring to record highs, as both nations are major wheat exporters. However, efforts to ensure shipments were not blocked led to a gradual easing of prices until early 2024.

The dip in the average value of the index between 2023 and 2024 was primarily due to declines in cereals and sugar prices. Cereal prices dropped by 13.3 per cent compared to 2023, while the FAO’s sugar price index fell by 13.2 per cent.

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