Food prices fell globally, rose in Turkey: Sugar prices impacted the index

According to FAO data, while global food prices increased by 6.7 percent annually in 2024, this rate was 43.6 percent in Turkey. The FAO Food Price Index closed the year with a 2.1 percent decline compared to 2023.

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Food prices fell globally, rose in Turkey: Sugar prices impacted the index

The United Nations Food and Agriculture Organization (FAO) has announced the 2024 results of the FAO Food Price Index, which tracks changes in international food prices. According to the data, the index closed 2024 at 2.1 percent below the previous year's level, reflecting a general decline in food prices. In particular, the decline in sugar and cereal prices was influential in this performance of the index.

GENERAL TREND IN GLOBAL FOOD PRICES

The FAO Food Price Index was recorded at 127 points in December 2024, an increase of 0.5 percent compared to the previous month. The index showed an increase of 6.7 percent compared to December 2023. However, throughout 2024, significant declines in cereal and sugar prices were offset by limited increases in vegetable oil, dairy, and meat prices. This situation led to a decline in the index on an annual basis.

SHARP DECLINE IN SUGAR PRICES

The Sugar Price Index fell by 5.2 percent in December 2024, showing a notable performance in the last month of the year. This decline was driven by improved sugarcane crop expectations in major producing countries such as Brazil and India. The sugar index finished 2024 at 13.1 percent below the previous year's level, and this decline was one of the most important factors balancing global food prices.

CHANGES IN CEREAL AND VEGETABLE OIL PRICES

The Cereal Price Index remained unchanged on a monthly basis in December 2024, while recording a 13.3 percent decline on an annual basis. This marked the second consecutive annual decline following the record level in 2022. The decline in global cereal prices stemmed from improvements in the supply-demand balance.

The Vegetable Oil Price Index, meanwhile, fell by 0.5 percent in December 2024. However, throughout 2024, due to global supply constraints, the index rose 9.4 percent above the previous year's level.

INCREASE IN DAIRY AND MEAT PRICES

Although the FAO Dairy Price Index fell by 0.5 percent in the last month of 2024, it showed an increase of 4.3 percent throughout 2024. The rise in butter prices was particularly influential in this increase.

The Meat Price Index rose by 0.4 percent on a monthly basis in December 2024, an increase of 7.1 percent compared to the same period of the previous year. It finished 2024 with a 2.7 percent increase.

FOOD PRICES IN TURKEY: INFLATION REMAINED HIGH

Contrary to FAO data, the increase in food prices in Turkey drew attention. According to data released by TUIK, food prices in Turkey increased by 43.58 percent as of December 2024 compared to the previous year. This rate shows that inflationary pressure in Turkey persists despite the decline in food prices in international markets.

News Source: 12punto