FAO’s (Food and Agriculture Organization) report reveals that global food commodity prices decreased by 2.1% in 2024 compared to the previous year.
This decline is reflected in the FAO’s Food Price Index, which averaged 122.0 points in 2024, down 2.6 points from 2023.
Despite this decrease, food prices remain significantly higher than pre-COVID-19 levels.
Throughout 2024, food prices experienced a 6.7% rise, driven primarily by increases in meat, dairy, and vegetable oil prices.
The FAO attributes the decline in global food prices to significant drops in cereal and sugar prices.
Cereal prices fell by 13.3% compared to 2023, while the Sugar Price Index decreased by 13.2%.
However, these reductions were partially offset by a 9.4% increase in the Vegetable Oil Price Index.
The global food market has experienced significant fluctuations in recent years.
Prices initially declined during the COVID-19 pandemic due to trade disruptions but subsequently soared amid surging inflation as the global economy recovered.
The ongoing conflict between Russia and Ukraine has also impacted food prices, as both nations are major wheat exporters.
In Nigeria, food inflation has reached record highs, with prices soaring to 39.93% in November 2024, up from 27.96% in December 2023, according to data from the National Bureau of Statistics.
The Food and Agriculture Organization’s report highlights the complex and dynamic nature of the global food market.
As the world continues to navigate economic and geopolitical uncertainties, it remains essential to monitor food prices and their impact on global food security.
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