October global food prices at highest level in 9 months

ANKARA

Moving upward for the fifth straight month, global food prices in October hit their highest level since January 2020, the UN Food and Agriculture Organization (FAO) said on Thursday.

The food price index increased 3.1% or 3 points from September to average 100.9 points in October, according to the FAO.

The rise stemmed from much firmer prices of sugar, dairy, cereals, and vegetable oils, it said.

The FAO Food Price Index is a trade-weighted index that tracks international market prices of five major food commodity groups.

The sugar price index in October rose 7.6% from the previous month, mostly reflecting the prospects of lower sugar output in the two largest sugar-producing countries – Brazil and India.

The FAO Cereal Price Index climbed 7.2% month-on-month and 16.5% year-on-year in October, mainly driven by wheat prices amid shrinking export availabilities.

The dairy price index rose 2.2% during the same period, with cheese rising the most, followed by skim milk powder, whole milk powder, and butter.

The vegetable oil price index gained 1.8% in October, posting a nine-month high, led by firmer palm and soy oil prices.

The FAO Meat Price Index was the sole index to post a monthly decline in October, down 0.5%, it said.