BAKU, Azerbaijan, January 23. The Food and Agriculture Organization (FAO) of the United Nations reported that the Food Price Index (FFPI) averaged 127 points in December 2024.
The food price index decreased by 0.5 percent compared to November but increased by 6.7 percent compared to the same period in the previous year.
The data obtained by Trend from an insider source claimed that the prices of grains, dairy products, sugar, and vegetable oils decreased, while meat prices increased during this period.
Grains
The price index for grains averaged 111.3 in December, reflecting:
- A decrease of 0.1 points (0.1 percent) compared to November;
- A decline of eleven-point-five points (9.3 percent) compared to the same period last year.
The key reasons for the decrease in the grain price index include:
- A drop in wheat prices due to a decline in international demand and high yields in Argentina and Australia;
- A decrease in the price of sorghum;
- A reduction in rice prices.
Vegetable Oils
The price index for vegetable oils averaged 163.3 in December, reflecting:
- A decrease of 0.9 points (0.5 percent) compared to November;
- An increase of forty-one points (33.5 percent) compared to the same period last year.
The main reasons for the reduction in the vegetable oil price index include:
- A drop in sunflower oil prices due to reduced demand;
- A decrease in canola oil prices;
- A decline in soybean oil prices.
Dairy Products
The price index for dairy products averaged 138.9 in December, showing:
- A decrease of one point (0.7 percent) compared to November;
- An increase of twenty-point-two points (17 percent) compared to the same period last year.
The key reasons for the decrease in the dairy price index include:
- A reduction in butter prices due to lower global demand;
- A decrease in cheese and skim milk powder prices driven by weaker demand.
Meat Products
The price index for meat averaged 119 points in December, reflecting:
- A 0.5-point (0.4 percent) increase compared to November;
- A rise of 7.9 points (7.1 percent) compared to the same period last year.
The main factors contributing to the increase in meat prices include:
- A rise in beef prices due to global demand and production limitations;
- An increase in lamb prices.
Sugar
The price index for sugar averaged 120 points in December, reflecting:
- A decrease of 6.4 points (5.1 percent) compared to November;
- A decline of 14.2 points (10.6 percent) compared to the same period last year.
The main factors behind the decrease in sugar prices include:
- Lower sugar prices due to improved agricultural prospects in Brazil;
- A drop in sugar prices due to the weakening of the Brazilian real against the US dollar;
- A reduction in global sugar prices as India and Thailand continued their sugar processing season.
Additionally, the Central Bank of Azerbaijan (CBA) reported that annual inflation in the country remained within the target range of 4±2 percent in December 2024. The 12-month inflation rate in December 2024 stood at 4.9 percent. Annual price growth was 5.5 percent for food products, 2.4 percent for non-food goods, and 6.3 percent for services. The annual core inflation rate was 4.4 percent.
Furthermore, State Statistics Committee indicated that Azerbaijan’s retail turnover reached 62.2 billion manat ($36.5 billion) in 2024, including food, beverages, and tobacco products valued at 34.1 billion manat ($20 billion) and non-food products worth 28.1 billion manat ($16.5 billion). The country’s retail turnover in real terms saw a 3.9 percent increase compared to 2023, with food, beverages, and tobacco products rising by 2.1 percent, and non-food products experiencing a growth of 6.3 percent.