- FAO reports a 2.1% decrease in world food prices from 2023 to 2024.
- Key drivers of price changes include declines in cereals and sugar but rises in oils, meat, and dairy.
- Despite the drop, food prices remain 26% higher than five years ago.
World food prices saw a modest decline of 2.1% in 2024 compared to the previous year, according to the FAO. The FAO’s Food Price Index averaged 122.0 points in 2024, which is 2.6 points lower than 2023.
However, prices rose over the year, especially in meat, dairy, and food oils, with a 6.7% increase from December 2023 to 2024.
FAO Reports 2024 Food Price Index Dip, But Inflation Still a Global Concern
The pandemic’s initial disruption caused food prices to fall, but a global economic rebound and inflation pushed prices higher. While the dip in 2024 marks a positive trend, food prices remain elevated, approximately 26% higher than five years ago. Russia’s invasion of Ukraine in 2022 exacerbated price surges, particularly for wheat. Efforts to stabilize shipments have helped ease prices, but they are still climbing in certain areas.
While the drop in prices was largely attributed to falling cereal and sugar prices, other factors drove increases. Meat, dairy, and food oils saw notable price hikes, which ultimately resulted in a 6.7% increase in the index from December 2023 to January 2024. This marks a complex year in global food pricing, where some products became more affordable, while others became more expensive.
The disruption of the global supply chain during the Covid-19 pandemic initially led to a dip in food prices, but the post-pandemic economic recovery, combined with inflation, pushed prices upward. The Russian invasion of Ukraine in 2022 caused a significant rise in wheat prices, as both countries are major exporters of the grain, further impacting food costs globally.
Despite the drop in prices in 2024, the food market remains volatile. The FAO continues to track monthly changes, indicating that while some commodities saw price reductions, the overall global food situation is still fraught with challenges. These trends suggest that long-term solutions are needed to stabilize food prices on a global scale.
In 2024, food prices showed signs of improvement, but global inflation and supply chain disruptions continue to affect overall affordability, with prices still elevated compared to previous years.
“Food prices remain considerably higher than they were five years ago, and despite the drop in 2024, there are still substantial challenges ahead.”
