IMF Commodity Price Index January 2024

Food, Fuels, Industrial Inputs, and Precious Metals Price Indexes

Global markets witnessed substantial growth in commodity prices in 2021 and 2022, driven by various factors such as supply chain disruptions, a surge in consumption demand due to easing COVID-19 restrictions, and geopolitical events like the Russia-Ukraine war, coupled with sanctions against the Russian economy and exports. The conflict and sanctions on Russia's energy exports led to a surge in energy and other commodity prices from February to the autumn of 2022. However, the overall commodity price index returned to levels observed before the Russia invasion of Ukraine in January 2023.

Despite a significant price decline in 2023, commodity prices have remained elevated compared to pre-COVID-19 pandemic levels. According to data from the International Monetary Fund (IMF) covering the period from January 2020 to January 2024, the price index for all commodities increased by 34%. Specifically, the price index for food and beverages rose by 31%, energy commodities (including crude oil, natural gas, coal, and propane) increased by 38%, industrial inputs (comprising agricultural raw materials and base metals) saw a rise of 33%, and precious metals (encompassing gold, silver, palladium, and platinum) experienced a more modest increase of 23%.