As the new year begins, international food prices are experiencing a downward trend, largely influenced by increased agricultural production worldwide and favorable currency conditions, particularly the depreciation of the dollar attributed to the economic policies of former President Donald Trump. The Food and Agriculture Organization (FAO) reported that there were declines in prices for meats, dairy, and sugar in January, which helped offset increases in cereals and vegetable oils, leading to an average price index reduction of 0.32% from December and 0.64% over the past year.

The reduction in external prices reflects not only improved supply and better stock levels but also the broader impact of Brazil's agricultural sector, which plays a significant role in the global market. Specifically, according to the Center for Advanced Studies in Applied Economics (Cepea), among the ten main products monitored, eight saw price declines in Brazil's agricultural sector during January. This signifies a robust production environment that assists in meeting both domestic and international demand, contributing to the global decrease in food prices.

As a direct consequence of these trends, consumers in Brazil are beginning to feel the effects of reduced prices at the farm level. The inflation rate for food saw noticeable declines in the previous month, indicating that the positive shifts in the agricultural sector and currency values are steadily helping to alleviate the cost burden on consumers. This ongoing dynamic underscores a pivotal economic relationship between local agricultural practices and global food pricing scenarios, hinting at further implications for policy-making in both Brazil and the United States.