Summarised by Centrist
According to the UN’s Food Price Index, global food prices rose for a second consecutive month in October, climbing 2% from September and 5.5% year-over-year.
This uptick follows a brief lull after last year’s highs. Vegetable oil prices for palm, soy, sunflower, and rapeseed oils were major contributors, spiking 7.3% due to production worries.
Analysts point to “sticky” inflationary trends, signalling that food price pressures are not easing anytime soon.
Key commodities in the food index presented varied trends. The Cereal Price Index increased by 0.9%, as global wheat and maize prices were hit by poor weather and transport issues in major producing regions. Rice prices bucked the trend, dropping 5.6% due to increased export competition following India’s relaxed restrictions on non-broken rice exports.
Meanwhile, the Sugar Price Index climbed 2.6%, fuelled by drought concerns in Brazil, higher crude oil prices, and currency shifts, which pushed sugarcane toward ethanol rather than sugar production.
Dairy prices also contributed to the inflationary trend, rising 1.9% with steep increases in cheese and butter prices, though milk powder prices softened. The Meat Price Index, however, declined slightly by 0.3% as pork prices fell due to weak demand.
