The United Nations Food and Agriculture Organization (FAO) has stated that global food prices have risen to unprecedented levels in the past two years. According to the FAO index, which is used to analyze price changes in commonly traded food commodities in the international market, the index stood at 130.1 points in August. This is a 6.9 percent increase compared to the previous year. The point value in July was also at a similar level, standing at 130.0 points. The August point value is the highest since February 2023. However, this figure is 18.8 percent lower compared to when prices surged at the start of the Russia-Ukraine war in 2022.
In August, vegetable oil prices reached their highest level in the past three years, showing a 1.4 percent increase. The price increase for some cooking oils was due to Indonesia mandating the inclusion of these oils in the biodiesel used in the country. However, soybean oil prices have decreased due to expectations of increased production in various regions of the world. Cereal prices have not increased in the past four months, including August. Compared to July, cereal prices have decreased by 0.8 percent. This is due to increased harvests in the European Union and Russia. However, corn prices have risen due to increased demand in the United States. Additionally, rice prices have fallen to their lowest level in three years. The main reasons for the decrease in rice prices are the depreciation of the Indian rupee and increased competition among exporters.
The index for meat prices has also risen to a record level. The meat index has changed by 0.6 percent, mainly due to increased demand for beef in the United States and China. Looking at dairy products, prices of butter, cheese, and milk have decreased by 1.3 percent. This is due to decreased demand for these products in Asian markets. After five months of decline, sugar prices increased by 0.2 percent in August.
