The FAO index fell by almost 11% this October compared to October last year. This means that many products become cheaper.
Currently, the total FAO food price index is at 120 points. This is about 11% less than a year ago at the same time.
For example, grain prices fell by as much as 18%. This is largely due to the increase in supply on the world market from the main exporting countries, as well as the fact that there is competition between them, which is only intensifying.
Vegetable oil prices fell by 21% over the year. But here everything is not so simple.
The vegetable oil price index fell mainly due to the fact that palm oil fell in price.
If we talk about sunflower, soybean and rapeseed, then, on the contrary, they have become more expensive.
Milk has fallen in price by 20% over the year, meat by an average of 3%, although nuances for meat also need to be taken into account. For example, poultry and lamb, on the contrary, have become more expensive.
The rise in prices for poultry meat is due to the fact that outbreaks of bird flu are being recorded, due to which the supply of this product is falling. But in general, the meat price index is declining, partly due to lower import demand in Asia.
There are also those positions for which the index is in no hurry to decline.
For example, the sugar index fell slightly compared to this September, but compared to last October it is almost 47% higher.
What are the prospects for food prices?
Experts say that it is quite difficult to predict price changes.
In general, prices around the world began to decline back in March 2022, when a full recovery from the coronavirus pandemic began.
However, the geopolitical turmoil of the past year has again become a factor in rising prices. Now the effect of these shocks is gradually decreasing, although new events cannot be ruled out that could again cause prices to rise.
At the same time, in addition to the rise in prices as such, it is necessary to take into account inflation, which causes the same effect: an increase in prices, but in this case it is associated with the depreciation of money.
Inflation is now a big problem for almost all world currencies. For example, in Russia in October prices increased by 0.83%, which is a fairly significant amount.
But if we talk specifically about food prices, then at the beginning of autumn they usually decrease due to the seasonality factor.
However, now the period of cheap vegetables and fruits is behind us, so in the coming weeks we can expect an even more significant rise in food prices, experts say.
