Global food commodity prices fell by 2.1% in 2024 compared to the previous year, according to the Food and Agriculture Organization (FAO) of the United Nations.

Despite the decrease, prices remain significantly higher than pre-pandemic levels.

The FAO’s Food Price Index, which tracks international prices of widely traded food commodities, averaged 122.0 points in 2024.

This represents a 2.6-point decline from the 2023 average.

However, the year saw a notable upward trend in food prices.

The index rose from 117.6 points in January to 127.0 in December, marking a 6.7% increase over the year.

This surge was driven primarily by higher prices for meat, dairy, and vegetable oils.

While food prices dipped slightly between 2023 and 2024, they remain about 26% higher than five years ago.

The COVID-19 pandemic initially caused food prices to decline due to trade disruptions, but inflationary pressures during the global economic recovery drove prices up significantly.

The situation was further exacerbated by Russia’s invasion of Ukraine in 2022, which disrupted wheat exports from the two major global suppliers and sent prices to record highs.

Subsequent efforts to stabilize shipments helped ease prices until early 2024.

The FAO attributed the annual decline in its index to sharp drops in cereal and sugar prices.

Cereal prices fell by 13.3% compared to 2023, while sugar prices decreased by 13.2%.

These reductions were partly offset by a 9.4% rise in the Vegetable Oil Price Index.

Despite the overall decline, the FAO noted that food prices continue to pose challenges for consumers and policymakers worldwide.