GLOBAL PRICES OF GRAINS,OIL AND OTHER FOODS EXPECTED TO DROP BY UP TO 11%

According to the World Bank’s April 2024 Commodity Outlook Report, global prices for food commodities are expected to decline notably through 2025. This trend is mainly driven by increased agricultural production and intensified export competition.

The report highlights that:

• Grain prices are projected to fall by 11% in 2024, with wheat alone expected to decline by 15% this year and an additional 2% in 2025.
• Overall food commodity prices are anticipated to drop by 9% in 2024 and a further 4% in 2025.

These declines are linked to record-high global maize yields and stable rice production, contributing to abundant supply.

However, the World Bank cautions that despite the drop, global food prices will still remain around 25% above the average from 2015–2019 levels.

In Ghana, the impact of these global changes may be muted by local economic conditions. As of March 2024, the country’s food inflation rate rose to 29.6%, up from 27.0% in February, suggesting domestic challenges could offset any global maize yields and stable rice production, contributing to abundant supply.