Agricultural Input Inflation Rises Again After Four-Month Decline

The Turkish Statistical Institute (TÜİK) has shared the agricultural input price index (Agriculture-GFE) data for October with the public. As of October 2024, the agricultural input price index showed an increase of 32.59% compared to the previous year. The Agriculture-GFE saw a month-on-month increase of 2.75% in October and rose by 27.92% compared to December 2023. When considering the twelve-month averages, a notable increase of 42.03% was observed. This rise in the Agriculture-GFE has significantly increased the overall cost of agricultural inputs. Changes in the index of goods and services used in agriculture have also shown a remarkable increase. According to the announced data, there was an increase of 3.04% in the prices of goods and services used in agriculture compared to the previous month, and a rise of 31.03% compared to the same month last year. Goods and services that contribute to agricultural investment were also affected by price increases. As of October 2024, this area experienced a month-on-month increase of 1.10%, while on an annual basis, an increase of 42.35% was recorded. These increases are prominent factors that raise costs for agricultural producers. The highest increase among subgroups was in animal feed. Within agricultural inputs, some subgroups exhibited much higher rates of increase. The subgroup that showed the highest annual increase was other goods and services, with a rate of 64.81%. The highest monthly increase was in animal feed, with a rate of 5.32%. The increase in costs for this group is a direct factor affecting producers engaged in livestock. The significant rise in input prices within the agricultural sector could potentially translate into product costs and consequently consumer prices.