Global food commodity prices declined by 2.1 percent in 2024 compared to the previous year.

This is according to recent data from the Food and Agriculture Organisation of the United Nations.

Despite the decline in global commodity prices, FAO said that prices remain significantly higher than pre-Covid-19 levels.

The FAO’s overall Food Price Index averaged 122.0 points in 2024, representing a decline of 2.6 points, or 2.1 percent, from the average value in 2023.

Despite this yearly decrease, food prices rose over the course of 2024, with the index increasing from 117.6 points in January to 127.0 in December—a 6.7 percent rise over the year, driven by increases in meat, dairy, and vegetable oil prices.

Recall that global food prices initially declined during the COVID-19 pandemic due to trade disruptions but subsequently soared amid surging inflation as the global economy recovered.

This comes as Russia’s invasion of Ukraine in February 2022 caused prices to spike to record highs, given that both nations are major wheat exporters. However, efforts to maintain shipments allowed prices to ease until early 2024.

The FAO noted that the decline in the average value of the index between 2023 and 2024 was largely attributed to significant drops in cereal and sugar prices.

Further analysis of FAO data showed that cereal prices fell by 13.3 percent compared to 2023, while the FAO’s Sugar Price Index decreased by 13.2 percent.

These reductions were partially offset by a 9.4 percent increase in the Vegetable Oil Price Index.

Meanwhile, data from the National Bureau of Statistics had shown that Nigeria’s food inflation soared to a record high of 39.93 percent in November 2024 compared to 27.96 percent in December 2023.

Global food prices declined by 2.1 percent In 2024 – FAO