Inflation News: Relief Expected For Your Wallet This Year – Prices Likely To Fall

According to a new World Bank report, food prices may drop by around 7 per cent in 2025. The steepest decline is expected in grain prices, which could fall by up to 11 per cent.

Rice Prices to See Sharpest Drop

The biggest reason for this overall decline is the anticipated 29 per cent drop in rice prices. The World Bank attributes this to the lifting of export restrictions by India and a boost in production, resulting in an abundant global supply of rice. India alone accounts for 40% of the world’s rice exports, so a significant fall in prices will have a global impact.

Mild Decline in Wheat and Corn Prices

Although wheat production remains strong, a slight decrease in stockpiles and a modest rise in consumption means no major drop in prices is expected. Meanwhile, corn prices could fall by 2 per cent in both 2025 and 2026. This decline is linked to reduced demand for biofuels and escalating trade tensions between the US and China. Additionally, corn cultivation is increasing due to recent favourable prices.

Soybean-Related Product Prices Also Expected to Fall

Prices of products derived from oil and meals are projected to fall by up to 7 per cent. Due to record soybean production and lower purchasing activity from China, soybean prices may decline by as much as 17%. Soybean meal could drop by 16 per cent, while soybean oil may see a slight decline as well.

Palm Oil Could Become Costlier

Contrary to the general trend, palm oil prices are expected to rise by 6% in 2025. The main reasons are Indonesia’s push to increase palm oil usage in biodiesel and a reduction in stock levels. This supply-side pressure may persist into 2026 as well.

Climate and Trade Policies Could Disrupt Forecast

However, the World Bank has also issued a warning: if weather conditions worsen or new trade restrictions are imposed by any country, these projections could reverse, leading to sudden spikes in prices.