The Food and Agriculture Organization (FAO) has announced that global food prices surged to their highest level in 18 months in October, driven by adverse weather conditions and production challenges.
The FAO Food Price Index, which tracks monthly changes in international prices, reached 127.4 points, a 2% increase from September and the highest since April 2023.
*Key Drivers of the Price Increase*
– _Vegetable Oil Prices_: Up 7.3% in October, reaching a two-year high due to lower production ¹.
– _Sugar Prices_: Rose 2.6% due to extended dry weather conditions in Brazil and a shift towards ethanol production.
– _Dairy Prices_: Increased by 2.5% driven by strong import demand and limited exportable availabilities.
– _Cereal Prices_: Gained 0.8% due to unfavorable weather conditions impacting wheat and transport challenges affecting maize.
Meat prices fell by 0.3% in October, primarily due to weak demand for pig meat ¹. This decline is a welcome respite for consumers who have been facing rising food prices.
The FAO Food Price Index is 20.5% lower than its peak in March 2022, following Russia’s invasion of Ukraine. However, the current increase in food prices may exacerbate concerns about food affordability and security, particularly in low-to-middle-income countries.
