Jan 05, 2025 (MENAFN via COMTEX) --
(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 AgricultureOrganization (FAO) of the United Nations.
Despite the drop, prices remained significantly higher comparedto the same period last year, reflecting the ongoing inflationarypressures on the global food market. The decline in sugar priceswas the main factor behind the overall decrease, as reported by theFAO Food Price Index (FFPI), which tracks monthly changes in theprices of key commodities such as cereals, dairy products, meat,and oils.
The FAO Food Price Index stood at 127 points in December, aminor decrease from the previous month's adjusted figure of 127.6points. While the index dropped marginally by 0.5%, it remains 6.7%higher than the previous year's level, indicating that food pricesare still elevated on a year-over-year basis. However, the currentindex is 20.7% lower than the peak levels seen in March 2022,offering some relief for consumers and businesses alike who havebeen grappling with the soaring food prices over the last fewyears.
One of the key drivers of the recent changes in food prices wasthe sharp drop in sugar prices, which contributed to the overalldecrease in the food price index for December. The reduction insugar prices, however, was not enough to offset the rise in meatprices, which continued to climb. While the decrease in prices fordairy 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, thefood price index for 2024 is still 2.1% lower than the averageprice levels seen in 2023. This decrease is a welcome sign forconsumers, particularly in developing countries, who have beenstruggling with the economic impact of high food costs. The FAOalso noted that global food prices in December 2024 were stillhigher than they were a year ago, reflecting the persistentchallenges in the global food supply chain, which have beenexacerbated by geopolitical tensions, climate change, and thelingering effects of the COVID-19 pandemic.
The FAO's projections for 2025 suggest that food prices willremain volatile, with fluctuations expected in key sectors such asmeat and dairy. However, experts anticipate that the overall trendmay be downward, as supply chains stabilize and production levelsincrease in response to growing demand for food commodities.
In conclusion, while December's report shows a slight decreasein the global food price index, the overall food price environmentremains challenging. Policymakers and industry leaders will need tocontinue addressing the underlying factors driving food priceinflation, with particular attention to the volatility in the meatand dairy sectors. As the global food market navigates thesechallenges, it is crucial for both producers and consumer.
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