Food prices rose at fastest rate in 18 months in September, UN says
Subscribe to enjoy similar stories. Food prices saw their fastest increase in 18 months in September, with the prices of all commodity groups rising, led by sugar, the Food and Agriculture Organization of the United Nations said. The FAO’s food price index, which tracks global prices for a basket of staple foods, averaged 124.4 points in September, up 3.0% from August and 2.1% higher on year.
The index increased at the fastest on-month rate since March 2022. In August, food prices stood at 120.7 points. Sugar prices rose 10.4% in September, driven by falling Brazilian crop prospects on prolonged dry weather and fires in August, and worries that India’s decision to lift ethanol production restrictions on sugarcane could hit export availabilities.
Cereal prices rose 3% on higher wheat and corn export prices. International wheat price increases largely reflect concerns of excessively wet conditions in Canada and the European Union, albeit partially offset by competitively priced supplies from the Black Sea region. Corn price increases rose as water levels were low on key transportation routes along the Madeira River in Brazil and the Mississippi River in the U.S.
Rice, conversely, fell 0.7% on quiet trading. Dairy prices rose 3.8% in September, reflecting higher prices for whole milk powder, skim milk powder, butter and cheese. Meat prices rose 0.4% on month, mainly on higher poultry meat prices as import demand remains strong for Brazilian products.
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