The global food price index increased by 2% in October from the revised September rate, reaching the highest level since April 2023, the UN Food and Agriculture Organization (FAO) said on Friday.
"The FAO Food Price Index (FFPI) averaged 127.4 points in October 2024, up 2 percent from its revised September level and the highest since April 2023. Price quotations for all commodities in the index, except meat, rose, with vegetable oils recording the largest increase at 7.3 percent. Compared to historical levels, the FFPI in October was 5.5 percent higher than its corresponding value a year ago but remained 20.5 percent below its peak of 160.2 points reached in March 2022," FAO stated.
The largest increase in two years was seen in the vegetable oils index, which rose by 7.3% from September to 152.7 points. The rise was driven by higher prices for palm, soybean, sunflower, and rapeseed oils amid concerns about reduced supply from producer countries.
The sugar price index reached 129.6 points, up 2.6% from September, reflecting production risks in Brazil due to ongoing drought and increased demand for sugarcane in ethanol production, driven by rising global oil prices.
The dairy price index reached 139.1 points, a 1.9% rise from the previous month, largely due to higher cheese and butter prices, influenced by seasonal milk production declines in the UK and EU. However, prices for skim milk powder declined as production increased in Oceania.
The grain price index saw the smallest increase in October, rising by 0.8% to 114.4 points, driven by strong demand in Brazil, which pushed up corn prices. Meanwhile, the rice index dropped by 5.6%, mainly due to falling prices of Indian rice.
The meat price index slightly decreased by 0.3% to 120.4 points from 120.8 points in September. Pork prices fell the most due to increased slaughter in Western Europe and weak global demand. Poultry prices also decreased due to higher supply from major producers, while lamb prices remained stable. Beef prices rose moderately due to increased global demand.
The Food Price Index is published monthly by FAO and consists of the average of five commodity group price indices: cereal, vegetable oil, dairy, meat and sugar.