Global Food Prices on the Decline: Trends Worldwide

Global Decrease in Food Prices

Irfan Donat

According to the latest FAO Food Price Index data, food prices worldwide continued to decline in January. While food prices have risen in Turkey, different dynamics are observed in international markets.

FAO Food Price Index Figures

The FAO Food Price Index decreased by 0.4% month-on-month and 0.6% year-on-year in January. The declines in the price indices for dairy products, meat, and sugar significantly offset the increases in the prices of grains and vegetable oils.

Inter-Country Differences

In Turkey, food inflation increased by 6.59% month-on-month and 31.69% year-on-year in January. The global decline in food prices creates an interesting contrast with Turkey's high food prices.

Highlighted Food Groups

The FAO Grain Price Index increased by 0.2% month-on-month in January, while it decreased by 3.9% year-on-year. While world wheat prices remained stable, good harvest expectations in Argentina and Australia exerted downward pressure on prices.

Global corn prices continued their downward trend, declining by 0.2% in the first month of the year. Although uncertainties regarding production conditions influenced the market, global supply remained sufficient.

Oil and Dairy Product Prices

The FAO Vegetable Oil Price Index rose by 2.1% month-on-month in January, increasing by 10.2% year-on-year. This rise is due to the increases in palm, soybean, and sunflower oil prices.

There was a significant decrease in dairy product prices. The FAO Dairy Product Price Index fell by 5.0% in January, bringing the year-on-year decrease to 14.9%. This decline is attributed to the reductions in cheese and butter prices worldwide.

Decrease in Sugar Prices

Finally, the FAO Sugar Price Index decreased by 1.0% month-on-month and 19.2% year-on-year in January. This situation is associated with the anticipated high production increase in India and positive expectations in Thailand.