d commodity prices declined by 2.1 per cent in 2024 compared to the previous year, the Food and Agriculture Organisation of the United Nations reported on Friday.

However, prices remain significantly higher than pre-COVID-19 levels.

The FAO’s overall Food Price Index averaged 122.0 points in 2024, representing a decline of 2.6 points, or 2.1 per cent, from the average value in 2023.

Despite this yearly decrease, food prices rose over the course of 2024, with the index increasing from 117.6 points in January to 127.0 in December — a 6.7 per cent rise over the year, driven by increases in meat, dairy, and vegetable oil prices.

The FAO tracks monthly and global changes in the international prices of a set of widely traded food commodities. While prices dipped slightly between 2023 and 2024, they remain approximately 26 per cent higher than they were five years ago.

Global food prices initially declined during the COVID-19 pandemic due to disruptions in trade but subsequently soared amid surging inflation as the global economy recovered.

Russia’s invasion of Ukraine in February 2022 caused prices to spike to record highs, given that both nations are major wheat exporters. However, efforts to maintain shipments allowed prices to ease until early 2024.

The FAO noted that the decline in the average value of the index between 2023 and 2024 was largely attributed to significant drops in cereal and sugar prices.

Cereal prices fell by 13.3 per cent compared to 2023, while the FAO’s Sugar Price Index decreased by 13.2 per cent. These reductions were partially offset by a 9.4 per cent increase in the Vegetable Oil Price Index.

Credit: punchng.com

Global food prices drop 2.1 pct in 2024: FAO

Comments (0)