Global food prices experienced a notable decline in December 2024, marking the lowest levels in 19 months, according to the United Nations Food and Agriculture Organization (FAO). The FAO Food Price Index, which tracks monthly changes in international prices of commonly traded food commodities, averaged 127.0 points, reflecting a 0.5% decrease from November and a significant 6.7% drop compared to December 2023. This reduction comes as a welcome relief for consumers worldwide, particularly in developing countries where food costs account for a significant portion of household expenses.

The price drops were primarily driven by declines in sugar, dairy products, and vegetable oils. Sugar prices fell sharply due to favorable production forecasts in major exporting countries, while increased global availability of dairy products and vegetable oils contributed to the overall downward trend. The FAO highlighted that these shifts are likely to benefit food security in vulnerable regions and provide much-needed stability for consumers amid global economic uncertainties.

Link: https://www.wsj.com/finance/commodities-futures/food-prices-fell-in-december-un-says-c630bbc9