World food prices surged in October, hitting an 18-month high and marking the highest level since April 2023.
The increase was driven largely by a 7.3% spike in vegetable oil prices, with gains seen across most staple food categories.
According to the United Nations Food and Agriculture Organization (FAO), the FAO Food Price Index (FFPI) rose to 127.4 points last month, a 2% increase from the revised 124.9 points in September.
‘The FAO Food Price Index (FFPI) averaged 127.4 points in October 2024, up 2% from its revised September level and the highest since April 2023,’ the report stated.
Compared to the same time last year, the FAO Food Price Index (FFPI) in October was 5.5% higher. However, it remains 20.5% below its peak of 160.2 points, which was reached in March 2022
The FAO’s Food Price Index, which tracks changes in international prices of globally traded food commodities, rose to 127.4 points, up from a revised 124.9 points in September.
This marks a 5.5% increase from October 2023, though the index remains 20.5% lower than the record high reached in March 2022 following Russia’s invasion of Ukraine.
“The rise was driven by higher quotations across palm, soy, sunflower and rapeseed oils. International palm oil prices increased for the fifth consecutive month in October, largely fuelled by concerns over lower-than-expected outputs coinciding with prospective seasonal production declines in key producing countries in Southeast Asia,” the report stated.
“Persisting concerns over the 2024/25 production outlook in Brazil, following a prolonged period of dry weather conditions, pushed sugar prices up in October. Additionally, higher international crude oil prices, which stimulate a greater use of sugarcane for ethanol production in Brazil, further contributed to the increase in prices,” the report stated
“International pig meat prices fell the most, reflecting increased slaughter in Western Europe amid weak domestic and foreign demand. World poultry meat prices fell slightly, pressured by higher export supplies from major global producers,” the report stated.