FAO reports global food prices decrease by 2.1 percent last year
(MENAFN) According to a recent report from the United Nations Food and Agriculture Organization (FAO), global food prices decreased by 2.1 percent in 2024 compared to the previous year. This decline was mainly driven by lower prices for cereals and sugar. The FAO Food Price Index for 2024 averaged 122 points, which is 2.6 points lower than the average for 2023, reflecting the overall downward trend in food prices.
Throughout most of 2024, the Index showed a steady increase, primarily driven by rising prices for dairy, meat, and vegetable oils. However, this increase was not enough to counterbalance the significant price drops in cereals and sugar. The FAO Cereal Price Index dropped by 13.3 percent compared to the previous year, while the Sugar Price Index also fell by 13.2 percent.
The FAO explained that the fall in cereal prices was largely due to lower wheat and coarse grain prices, which significantly impacted the overall food price trends. Despite the upward pressure from some food categories, these declines in cereals and sugar prices were the primary factors behind the overall reduction in food costs.
The report further revealed that the FAO Food Price Index for December 2024 averaged 127 points, which represented a slight decrease of 0.5 percent compared to November. However, this figure still marked a 6.7 percent increase compared to December 2023, indicating ongoing fluctuations in global food prices.
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