Food prices hit five-year low; impact of low oil price on global food prices, poverty, and inequality | Division for Inclusive Social Development (DISD)

Between August 2014 and May 2015, international food prices declined by 14% which was a five-year low. Cheap oil was a huge factor in abundant global supplies of food in 2014 and prospects of a bumper crop for wheat, maize and rice in 2015 also contributed to the low numbers. Less expensive chemical fertilizers benefited the agriculture and food sector as well.

During this year, wheat prices went down 18%, rice prices dropped by 14%, and maize prices decreased by 6%. Domestic grain prices remained fairly stable during the year due to large food supplies and global food price declines. Domestic food prices did increase in countries that were hit by Ebola, areas affected by conflict, and countries whose currencies depreciated.

When asked about the decline in food prices, Jose Cuesta, the Senior Economist at The World Bank Group said "the decline in food prices is welcome, because more poor people can potentially afford to buy food for their families. However, unexpected domestic food price fluctuations remain a possibility so it is crucial that countries are prepared to address dangerous food price hikes when and if they unfold."

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