The United Nations Food and Agriculture Organization (FAO), 2024 report saw food prices record a significant rise that year. The report states that Food Price Index (FPI) increased from 117.6 points in January to 127.0 points in December. The FPI, which tracks monthly changes in international prices for key globally traded commodities reflected a 6.7% increase from December 2023 to December 2024. This surge was driven by higher prices for meat, dairy products, and vegetable oils.
The decline in the annual average was largely attributed to significant drops in cereal and sugar prices. Cereals saw a 13.3% reduction, while sugar prices fell by 13.2% compared to 2023. However, these declines were partially offset by a 9.4% rise in the vegetable oil price index.
Despite the annual drop, the continued upward trend in food prices toward the end of the year highlights the complex factors affecting global food supply chains and the challenges they present for consumers worldwide.
The FAO explained that disruptions to global trade during the COVID-19 pandemic initially caused food prices to dip, but they surged as inflation rose during the global economic recovery. Additionally, the 2022 Russian invasion of Ukraine caused prices to spike to record levels, as both nations are key exporters of wheat. Efforts to stabilise shipments helped ease prices, but inflationary pressures persisted into 2024.
