Striking turnaround in food sector price increases

July 2023 stands out as a pivotal month for the food industry. While the sector started the year with a staggering 18.3% price hike, that trend has since tapered off, settling at a modest 1.8% compared to the previous July. According to a recent analysis by our economic editorial team, this represents the year's most subdued price increase.

Within the broader industrial landscape, 15 out of 22 sectors still report rising prices. Leading the pack are the construction materials industry, with a surge of 12.9%, and the beverage industry, witnessing a 9.4% climb in prices. On the flip side, the food industry (1.8%) finds itself on the quieter end of the spectrum, alongside sectors like the pharmaceutical and the electrical engineering industries, both experiencing a modest 1.6% hike.

The overall 7.7% price decrease in the industry for July was largely driven by significant downturns among industrial giants. A sharp decline in oil prices led to a 28.3% plummet in the petroleum industry. Additionally, both the chemical (down by 22.9%) and basic metal industries (down by 14.6%) reported substantial decreases.

When considering the restrained price trend in the food industry, major price reductions in the oils and fats sector (-17.2%), animal feed industry (-16.7%), and dairy industry (-6.2%) played crucial roles. Nevertheless, certain branches within our industry experienced noteworthy surges. The flour industry led with a rise of 32.6%, followed by the fruit and vegetable processing industry (+23.1%), bakery goods industry (+15.6%), and the fish processing industry (+9%).