Global food commodity prices dropped by 2.1 percent in 2024 compared to the previous year, according to a report by the Food and Agriculture Organization (FAO) of the United Nations released on Friday. Despite the decline, food prices remain significantly higher than pre-pandemic levels, raising concerns about affordability for many nations.

The FAO’s Food Price Index, which monitors monthly changes in international prices of widely traded food commodities, averaged 122.0 points in 2024, a reduction of 2.6 points from the 2023 average. However, food prices climbed steadily throughout the year, rising from 117.6 points in January to 127.0 in December, marking a 6.7 percent increase within 12 months.

The rise was primarily driven by increases in the prices of meat, dairy, and vegetable oil, even as cereal and sugar prices saw significant declines. Cereal prices dropped by 13.3 percent compared to 2023, while the Sugar Price Index fell by 13.2 percent. Meanwhile, the Vegetable Oil Price Index surged by 9.4 percent, partially offsetting the broader declines.

“While the overall index indicates a year-on-year decrease, food prices remain about 26 percent higher than they were five years ago,” the FAO highlighted.

Global food prices initially fell during the COVID-19 pandemic due to disruptions in trade but surged in the aftermath, driven by inflation and the recovery of the global economy. The war in Ukraine further exacerbated the situation, causing record spikes in 2022 due to disruptions in wheat exports from two of the world’s largest producers—Russia and Ukraine.

Efforts to stabilize shipments allowed prices to ease until early 2024, with cereal and sugar prices leading the downward trend. However, the late-year spike in key commodities raises concerns about food affordability for low-income households globally.

The FAO’s report underscores the need for continued global cooperation to address food security challenges, particularly for vulnerable populations.