World food prices reach 1.5-year high, driven by increases in vegetable oils, cereals

The Food and Agriculture Organization's (FAO) Food Price Index, which tracks global price trends for key food commodities, reached an average of 127.4 points in October 2023. This marks the highest level since April 2023, FAO report said.

Compared to September, the index saw a 2 per cent increase, and it was up 5.5 per cent from October 2022. However, it remains 20.5 per cent below its peak of 160.2 points in March 2022, Caliber.Az reports.

The report highlights that in October, prices for most goods tracked by the index increased, with the exception of meat. The biggest increase was seen in vegetable oils, which surged by 7.3 per cent. This rise was driven by higher prices for palm, soybean, sunflower, and rapeseed oils.

The FAO Cereal Price Index rose 0.8 per cent in October, reaching 114.4 points, though it remains 8.3 per cent lower than the same period in 2022. World wheat prices continued to climb for the second consecutive month, fueled by concerns over unfavorable weather conditions for winter planting in key producing countries, including the EU, Russia, and the USA.

Additionally, rising tensions in the Black Sea region and the re-establishment of "unofficial minimum prices" in Russia have also contributed to the price increases.

The FAO Dairy Price Index rose by 1.9 per cent to 139.1 points in October, while the Meat Price Index increased slightly by 0.3 per cent, reaching 120.4 points. The Sugar Price Index also saw a rise for the second month in a row, increasing 2.6 per cent to 129.6 points.

These price increases reflect broader global economic trends and challenges, including weather-related production concerns and geopolitical factors affecting supply chains.

By Vafa Guliyeva