Global Food Prices Decreased in October

Global Food Prices Decreased in October

Global food prices experienced a significant decline as of October 2023. According to the food price index data released by the Food and Agriculture Organization of the United Nations (FAO), food prices worldwide decreased by %1.6 on a monthly basis and showed a %0.4 drop on an annual basis.

Food Inflation Rises in Turkey

During the same period, food inflation in Turkey exhibited a contrary trend, rising by %3.41 monthly and %34.80 annually.

Global Supply Abundance is Influential

The decline in global food commodity prices is largely attributed to the abundance of global supply and increased production expectations. The FAO Cereal Price Index fell by %1.3 in October, while it decreased by %9.5 on an annual basis. Particularly, wheat prices dropped by %1.0 due to positive harvest expectations.

Changes in Vegetable Oil and Meat Prices

The FAO Vegetable Oil Price Index increased by %0.9 in October, reaching its highest level since July 2022. The demand for palm and soybean oils contributed to this increase. On the other hand, the FAO Meat Price Index showed a decline of %2.0, while an annual increase of %4.8 was recorded.

Declines in Milk and Sugar Prices

The FAO Dairy Products Price Index fell by %3.4 in October, with declines observed across all sub-indices. Meanwhile, the FAO Sugar Price Index decreased by %5.3 in October, marking its second consecutive monthly loss.

Record Expectations in Global Cereal Production

The FAO forecasts that global cereal production will increase by %4.4 in 2025, reaching 2,990 million tons. Global cereal trade is also expected to rise by %3.2 to 499.5 million tons.