World food prices have fallen again, while in Turkey they have been rising for 36 months.

The Food and Agriculture Organization of the United Nations (FAO) announced that world food prices fell in August, led by staples other than rice and sugar.

The FAO Food Price Index, which tracks monthly changes in international prices of globally traded food commodities, decreased 2.1 percent compared to the previous month and 12 percent compared to the previous month. the same month of the previous year, up to 121.4 points in August.

This was recorded as one of the largest declines for the index.

It should be noted that the level registered in August is also 24 percent below the peak registered in March 2022.

SUNFLOWER OIL PRICES DECREASED BY 8 PERCENT

The FAO Vegetable Oil Price Index fell 3.1 percent in August, partially reversing the sharp 12.1 percent increase in July.

World sunflower oil prices fell about 8 percent during the month as global import demand weakened.

World soybean oil prices fell due to improving production conditions in the US, while palm oil prices fell moderately due to seasonally increased production in major producing countries in Southeast Asia.

THE PRICES OF GRAINS, MEAT AND MILK ALSO DECREASED

The FAO Cereal Price Index fell 0.7 percent in August compared to July.

International wheat prices fell 3.8 percent in August due to increased seasonal supplies from many major exporters.

International grain prices fell 3.4 percent, boosted by abundant global corn supplies coming from the record harvest in Brazil and the imminent start of the harvest in the United States.

The FAO Dairy Price Index fell 4 percent from July, boosted by international quotations for abundant whole milk powder from Oceania.

International butter and cheese prices also fell, partly due to sluggish market activity due to the summer holidays in Europe.

The monthly decline in the FAO Meat Price Index was 3 percent.

Sheep prices fell due to weak demand from China. The strong offer also pushed down the prices of pork, poultry and beef.

ONLY THE PRICES OF SUGAR AND RICE RISE

World rice and sugar prices increased in August.

The FAO price index for all types of rice rose 9.8 percent compared to July, reaching its highest level in 15 years.

This was due to the trade disruption that followed the ban on Indica white rice exports by India, the world’s largest rice exporter.

Uncertainty over the duration of the ban and concerns about export restrictions led to stockpiling and negatively affected the supply chain. Most of the trading was limited to small volumes and previously completed sales.

The FAO Sugar Price Index rose 1.3 percent month on month in August. Compared with August of the previous year, it increased by 34.1 percent.

This increase was mainly due to concerns about the impact of the El Niño weather phenomenon on sugarcane.

Contributing to this concern were below average rainfall in August and persistent dry weather in Thailand.

CONTINUOUSLY INCREASING FOR 36 MONTHS IN Türkiye

On the other hand, world food prices rose to 127.2 in April 2023 for the first time in a year. However, world food prices, which began to fall again in May, increased by 1.3 percent in July after continuing this decline in June. Thus, it began to rise again from the low level of the last two years.

Beginning in August, world food prices began to decline again.

According to data from the Turkish Statistical Institute (TUIK), food prices in Turkey have risen continuously for the past 36 months since August 2020.

According to the August 2023 inflation data announced by TURKSTAT four days ago, food inflation was 72.86 percent annually and 8.48 percent monthly.