(MENAFN- AzerNews)
In December 2024, global food prices saw a slight decrease,
primarily driven by the reduction in sugar prices,
Azernews reports, citing the Food and Agriculture
Organization (FAO) of the United Nations.
Despite the drop, prices remained significantly higher compared
to the same period last year, reflecting the ongoing inflationary
pressures on the global food market. The decline in sugar prices
was the main factor behind the overall decrease, as reported by the
FAO Food Price index (FFPI), which tracks monthly changes in the
prices of key commodities such as cereals, dairy products, meat,
and oils.
The FAO Food Price Index stood at 127 points in December, a
minor decrease from the previous month's adjusted figure of 127.6
points. While the index dropped marginally by 0.5%, it remains 6.7%
higher than the previous year's level, indicating that food prices
are still elevated on a year-over-year basis. However, the current
index is 20.7% lower than the peak levels seen in March 2022,
offering some relief for consumers and businesses alike who have
been grappling with the soaring food prices over the last few
years.
One of the key drivers of the recent changes in food prices was
the sharp drop in sugar prices, which contributed to the overall
decrease in the food price index for December. The reduction in
sugar prices, however, was not enough to offset the rise in meat
prices, which continued to climb. While the decrease in prices for
dairy products, vegetable oils, and cereals provided some balance,
it was the meat sector that kept global food prices elevated.
The FAO's report highlights that, despite some fluctuations, the
food price index for 2024 is still 2.1% lower than the average
price levels seen in 2023. This decrease is a welcome sign for
consumers, particularly in developing countries, who have been
struggling with the economic impact of high food costs. The FAO
also noted that global food prices in December 2024 were still
higher than they were a year ago, reflecting the persistent
challenges in the global food supply chain, which have been
exacerbated by geopolitical tensions, climate change, and the
lingering effects of the COVID-19 pandemic.
The FAO's projections for 2025 suggest that food prices will
remain volatile, with fluctuations expected in key sectors such as
meat and dairy. However, experts anticipate that the overall trend
may be downward, as supply chains stabilize and production levels
increase in response to growing demand for food commodities.
In conclusion, while December's report shows a slight decrease
in the global food price index, the overall food price environment
remains challenging. Policymakers and industry leaders will need to
continue addressing the underlying factors driving food price
inflation, with particular attention to the volatility in the meat
and dairy sectors. As the global food market navigates these
challenges, it is crucial for both producers and consumer.
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