Food Prices Declining in 2025: October Report

Global food prices have begun to fluctuate at their lowest level of 2025 following a decline in October. The FAO Food Price Index has decreased for the second consecutive month in October, reaching its lowest level since January. This decline is attributed to the strong performance of global agricultural supply and favorable climatic conditions in the Southern Hemisphere.

In particular, the cereal price index fell by 1.3 percent in October, marking its lowest level since September 2020. As winter approaches, the steady progress in winter wheat planting in the Northern Hemisphere has exerted pressure on wheat prices. All these factors contribute to the overall decline in food prices.

Additionally, a notable sharp drop has been observed in dairy product prices. These changes are associated with both production surpluses and fluctuations in demand. Researchers emphasize that seasonal factors must also be considered alongside market dynamics when analyzing this situation. The supply-demand balance of agricultural products on a global scale should be closely monitored, particularly for essential food items such as dairy and grains.

Finally, it is anticipated that these fluctuations in the food sector will have significant economic impacts for both producers and consumers. While the decline in food prices may help alleviate inflationary pressures, it also creates challenges for agricultural producers in maintaining reasonable price levels. Therefore, this situation indicates that markets need to be continuously monitored.