World Bank Predicts Significant Drop in Global Food Prices by 2025
Our top story today focuses on global food prices and the latest predictions from the World Bank.
According to the April 2024 Commodity Outlook Report released by the World Bank, there’s good news for consumers around the world. The report forecasts a substantial drop in global food prices over the next couple of years.
In 2024, we can expect a 6 percent decrease in food prices globally. But that’s not all—2025 is projected to bring an additional 4 percent decline. These price reductions are mainly attributed to lower costs for grains, oils, and meals.
Let’s break it down further. The grains price index is expected to fall by 11 percent in 2024, driven by higher global grain supplies. Wheat prices, in particular, are anticipated to decline by 15 percent in 2024 due to elevated production. And there’s more—another 2 percent decrease in wheat prices is projected for 2025.
But what does this means for consumers is that, it’s good news for your grocery budget. While some other food items might see price gains in 2024, overall, we’re looking at broad-based declines in food prices.
Global maize production is set to reach an all-time high in the 2023–24 seasons. However, rice production remains flat, and due to tight global markets and India’s export restrictions, rice prices are forecast to rise by 8 percent (year-on-year) in 2024.
local impact
Well, in Ghana, we’ve seen a reverse in food disinflation. The food inflation rate shot up from 27.0% in February to 29.6% in March 2024. This rise comes amid ongoing concerns about food insecurity in the sub-Saharan region.
2025 Outlook:
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- An additional 4% decline in global food prices is projected for 2025.
- The grains price index is forecasted to fall by 11% in 2024, driven by higher global grain supplies.
- Wheat prices are expected to decline by 15% in 2024 due to elevated production, with a further 2% decrease in 2025.
The World Bank’s report provides valuable insights for policymakers and stakeholders worldwide. As global food prices are expected to decrease, we’ll keep a close eye on how these changes impact Ghana’s food market and overall food security. Stay tuned for further updates.
