Global Food Prices Decreased in October

Global Food Prices Declined in October

Global food prices experienced a significant drop 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, while showing a %0.4 decline on an annual basis.

Food Inflation in Turkey Increased

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

Global Supply Abundance is Impactful

The decline in global food commodity prices largely occurred due to the abundance of global supply and an increase in production expectations. The FAO Cereal Price Index fell by %1.3 in October, and experienced a %9.5 decline on an annual basis. In particular, 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 the 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 recording an annual increase of %4.8.

Declines in Milk and Sugar Prices

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

Record Expectations for 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.