Global Food Prices Post Biggest Annual Drop Since 2015
- Media Manager
- Jan 5, 2024
- 1 min read
Bloomberg
Written By: Aine Quinn
Published: January 5th, 2024
Photo Credit: Unsplash/CC0 Public Domain
Steep drop in raw prices could indicate relief for consumers
Fall in wholesale prices take time to feed through to retail
An index of food-commodity prices created by the United Nations’ Food and Agriculture Organization fell about 10 per cent in 2023, according to data released on Friday.
While the index tracks raw commodity costs rather than retail prices, the steep drop could indicate potential relief on the way for consumers, as food prices ease from a 2022 peak that followed Russia’s invasion of Ukraine and contributed to a cost-of-living crisis in countries across the world.
Corn and wheat futures prices saw their biggest annual declines in a decade last year, as supply concerns faded. Futures prices for hogs and palm oil also posted big declines.
While the UN’s index is now at the lowest level since February 2021, lower wholesale costs have been taking some time to percolate down to supermarkets and consumers. However, there are signs that food inflation is cooling. The indicator fell sharply in the United Kingdom last month to to the lowest since June 2022, while food, fuel and alcohol price rises have also slowed in New Zealand. In Pakistan, bigger production is likely to help slow food price rises.
