World food prices rose for a third straight month in October to reach a 10-year peak, led by increases in cereals and vegetable oils, said the UN’s Food and Agriculture Organization (FAO).
The FAO food price index tracks international prices of the most globally traded food commodities and the October reading was the highest for the index since July 2011. On a year-on-year basis, the index was up 31.3% in October.
Agricultural commodity prices have risen steeply in the past year, driven by harvest setbacks and strong demand. The FAO’s cereal price index rose by 3.2% in October from the previous month. That was led by a 5% jump in wheat prices, which climbed for a fifth consecutive month to reach their highest since November 2012, FAO said.
“Tighter availability in global markets due to reduced harvests in major exporters, especially Canada, the Russian Federation and the United States of America, continued to put upward pressure on prices,” FAO said of wheat.
World vegetable oil prices were up 9.6% on the month to set a record high. In contrast, global sugar prices eased 1.8% in October, ending a run of six straight monthly rises, according to FAO.
Food supplies and prices are under pressure from extreme weather, snarled supply chains, worker shortages and rising costs. Supermarkets in some major economies have struggled to keep their shelves fully stocked at points during the pandemic.
