Agricultural Input Inflation Hits Lowest Level in 15 Months

The Turkish Statistical Institute (TÜİK) has released the agricultural input inflation data for the period of September 2024. The agricultural input price index (Agricultural-GFE) recorded an annual increase of 31.83% and a monthly increase of 1.77% in September. The annual figure is noted as the lowest in the last 15 months.

In September 2024, the Agricultural-GFE increased by 1.77% compared to the previous month and by 24.50% compared to December 2023. Compared to the same month of the previous year, the index rose by 31.83%, while the twelve-month averages recorded an increase of 42.52%. These figures illustrate the rising costs of inputs used in agricultural production, indicating that the economic pressure on the sector persists.

Significant increases occurred in major groups. The index of goods and services used in agriculture rose by 1.58% compared to the previous month, while the index of goods and services contributing to agricultural investment increased by 2.87%. On an annual basis, the index of goods and services used in agriculture increased by 29.71%, and the index of goods and services contributing to agricultural investment showed a rise of 45.28%. These increases demonstrate that costs are rising across various aspects of agricultural production. In particular, the rise in goods and services related to agricultural investment highlights the economic challenges producers may face when investing.

What is the current situation in the subgroups? The highest annual change was observed in veterinary expenses with a 74.12% increase. On a monthly basis, the highest change was noted in the seeds and planting materials group, which recorded a 6.10% increase. These figures indicate that cost increases have become more pronounced in certain areas of the agricultural sector.

The sharp rise in veterinary expenses particularly points to rapidly increasing costs in livestock farming. The increase in seeds and planting materials highlights that costs have remained high since the beginning of agricultural production processes. This presents a significant challenge for the sustainability of agricultural production.