Global food prices rose again last month and are now almost 10% above last year’s levels, according to new UN figures.
The Food & Agriculture Organization’s Food Price Index, which measures monthly changes in international prices of a basket of food commodities, averaged 172.6 points in October, up 0.7% from last month and 9.1% higher than October 2015.
Except for a short-lived drop in July, global food prices have risen continuously since the start of the year, according to the FAO, which said last month’s increase was driven by a “sharp” rise in sugar and dairy prices, as well as higher wheat and maize prices.
Sugar prices rose 3.4% to 315.3 points last month amid reports of production shortfalls in Brazil’s Centre South region and India’s Maharashtra state, while dairy prices were up 3.9% to 182.8 points as a result of tightening supplies of butter and cheese in Europe.
“Falling month-on-month milk production in the EU and lower output in Oceania have raised expectations of a likely forthcoming tightening in export supplies and fuelled a price surge in recent months,” the FAO report said.
Grain prices rose for the first time in three months in October, up 1.4% to 142.3 points. Wheat prices were rising as a result of tightening supplies of higher-quality wheat, while maize prices were up following high demand in the US, it noted.
The sugar, dairy and grains rises were moderated by drops in oil and meat prices.
Oil prices fell 2.4% month on month to 168 points following improved production of palm oil in South East Asia, but they remain “well above” last year’s level, with soy, sunflower and rapeseed oil values still “firm”. Meat prices were down 1.7% to 163.4 points in October, driven by slacker demand for European pigmeat from importers in China.
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