Economy in Turkey: While food prices fall globally, they sky-rocket in Turkey

Global food prices have reached their lowest levels in the past two years. Worldwide, in August, prices for meat, milk, sunflower oil, and grains have declined. Turkey, where food prices have been continuously rising for 36 months, stands out as the top-ranking country among OECD nations.

FALLING GLOBALLY RISING IN TURKEY

The United Nations Food and Agriculture Organization (FAO) announced that global food prices had decreased.

According to the FAO Food Price Index, there was a 2.1% decrease in August compared to the previous month, and a 12% decrease compared to the same month of the previous year. This marks one of the largest declines recorded in the index. It is noteworthy that the level recorded in August is 24% lower than the peak recorded in March 2022.

OIL, MEAT, AND MILK PRICES DECLINE

According to the FAO Vegetable Oil Price Index, global sunflower oil prices decreased by approximately 8% last month, partly due to weakening global import demand. The sharp increase in sunflower oil prices in July, which was 12.1%, declined by 3.1% in August.

The FAO Cereal Price Index decreased by 0.7% in August compared to July. International wheat prices dropped by 3.8% in August due to increased seasonal supply from many leading exporters. Global corn supply, abundant due to a record harvest in Brazil, and the upcoming harvest in the United States, led to a 3.4% decrease in international cereal prices.

According to the FAO Dairy Price Index, milk prices decreased by 4% compared to July. Butter and cheese prices also declined. The monthly drop in the FAO Meat Price Index was 3%.

THE ONLY INCREASE IN SUGAR AND RICE PRICES

In August, the only price increases were observed in rice and sugar. The FAO All Rice Price Index increased by 9.8% compared to July, reaching its highest level in 15 years. The Sugar Price Index increased by 1.3% on a monthly basis in August. Compared to the same month of the previous year, it increased by 34.1%. Global food prices rose for the first time in a year in April, then began to decline again in May. This decline continued in June, reaching the lowest point in the past two years. After a 1.3% increase in July, global food prices started to decline again as of August.