Global Food Prices Fall in 2024, Still Higher than Pre-COVID Levels
The Food and Agriculture Organisation (FAO) of the United Nations reported a 2.1% decrease in the price of food commodities globally in 2024 compared to the previous year. However, prices remain significantly higher than they were before the COVID-19 pandemic.
In 2024, the FAO’s overall Food Price Index averaged 122.0 points, a decrease of 2.6 points or 2.1% from 2023. Despite this annual decline, food prices experienced an overall increase throughout the year, with the index rising from 117.6 points in January to 127.0 points in December, marking a 6.7% increase driven by higher prices for meat, dairy, and vegetable oil.
The FAO tracks the international prices of a group of commonly traded food commodities on a monthly and global basis.
Although there was a slight decrease from 2023 to 2024, prices are still approximately 26% higher than they were five years ago.
During the COVID-19 pandemic, disruptions in trade initially led to a decline in food prices. However, as the global economy recovered, prices surged due to rising inflation.
Following Russia’s invasion of Ukraine in February 2022, which impacted wheat supplies from both countries, food prices reached record highs. Despite efforts to maintain shipments, prices were able to decrease until early 2024.
The significant decline in sugar and cereal prices played a major role in the average value of the index dropping between 2023 and 2024, as reported by the FAO.
Compared to 2023, cereal prices fell by 13.3% and the FAO’s Sugar Price Index decreased by 13.2%. However, a 9.4% increase in the Vegetable Oil Price Index partially offset these declines.
