Food Prices Drop Globally In 2024, Yet Still Sky-High Compared To Pre-Pandemic

Food Prices Drop Globally In 2024, Yet Still Sky-High Compared To Pre-Pandemic

According to the Food and Agriculture Organization (FAO) of the United Nations, global food commodity prices saw a slight drop of 2.1% in 2024 compared to the previous year. However, prices remain significantly higher than they were before the COVID-19 pandemic.

The FAO’s Food Price Index averaged 122.0 points in 2024, down by 2.6 points or 2.1% from 2023. Despite this annual decrease, food prices experienced an upward trend throughout 2024, climbing from 117.6 points in January to 127.0 points in December — a 6.7% rise. This increase was driven by a surge in meat, dairy, and vegetable oil prices.

The FAO tracks monthly and global shifts in international prices for widely traded food commodities. While prices did fall slightly between 2023 and 2024, they remain 26% higher than they were five years ago.

During the COVID-19 pandemic, food prices initially dipped due to trade disruptions, but surged again as the global economy recovered. Russia’s invasion of Ukraine in 2022 also played a significant role in driving prices to record highs, especially for wheat, as both countries are major exporters. However, ongoing efforts to maintain food shipments helped ease prices by early 2024.

Notably, the FAO attributes the overall drop in food prices from 2023 to 2024 to notable reductions in cereal and sugar prices. Cereal prices fell by 13.3%, while sugar prices dropped by 13.2%. These reductions were partially offset by a 9.4% increase in vegetable oil prices.

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