Commodity

The FAO Food Price Index declined by 1.6 percent from December. While the Index was 6.2 percent higher than its January 2024 level, it remains 22 percent below its peak of March 2022.

In 2024, the FAO Food Price Index was 2.1 percent lower than its 2023 average. While the December 2024 Index was higher than its December 2023 value, it also remained well below the peak prices seen in March 2022.

Rising dairy and vegetable oil prices drove the FAO Food Price Index up by 5.7 percent from November 2023 and to the highest value seen since April 2023. The Index remained more than 20 percent below the peak reached in March 2022, however.

Russia’s recent attacks on Greater Odesa port infrastructure and grain-carrying vessels in the Black Sea marked the most intense attacks on Ukraine’s agricultural infrastructure in over a year. In September, according to the United Nations, Russian attacks damaged grain infrastructure and six civilian vessels in Ukraine’s Black Sea ports. Russian ballistic missiles then struck foreign-flagged ships on October 6, October 7, October 9, and October 14, also damaging a grain warehouse and other port infrastructure with the October 14 strike.

The FAO Food Price Index rose 2 percent in October to reach its highest level since April 2023. However, the Index remained 20.5 percent below the record high seen in March 2022.