World food prices dip 2% in 2024: FAO

Berlin: So, the FAO just dropped some news about food prices. They said that in 2024, global food prices dipped by about 2.1% compared to last year. But here’s the kicker—they’re still way higher than they were before the pandemic hit.

The Food Price Index averaged around 122 points, which is a bit lower than the 2023 average. But don’t let that fool you; prices actually went up throughout the year. They started at 117.6 points in January and climbed to 127.0 by December.

Interestingly, the index jumped 6.7% from December 2023 to 2024. The main culprits for this increase were meat, dairy, and food oils. The UN’s food agency keeps a close eye on these monthly changes in global food prices, so they’ve got the scoop on what’s happening.

Even with the recent dip, food prices are still about 26% higher than they were five years ago. Remember how the pandemic messed with global trade? Initially, food prices dropped, but then they shot up again as inflation kicked in and the economy started bouncing back.

And let’s not forget about the impact of Russia’s invasion of Ukraine back in February 2022. That really sent prices soaring since both countries are big players in the wheat market. Thankfully, efforts to keep shipments flowing helped ease prices a bit as we entered 2024.

The overall drop in the index from 2023 to 2024 was mainly because cereal and sugar prices fell. Cereal prices dropped by 13.3%, and sugar prices fell by 13.2%. But, just to keep things interesting, vegetable oil prices actually went up by 9.4%.