World food prices rose for the third month in a row in October, reaching their highest level in a decade, driven by price increases in grains and vegetable oils.
Wheat price at record height
The Food Price Index of the Food and Agriculture Organisation of the United Nations (FAO), which tracks the international prices of the globally most traded food products, averaged 133.2 points last month, up from 129.2 in September. The October index was the highest since July 2011. On an annual basis, the index rose by more than 31 per cent last month, Reuters reports.
Prices for agricultural commodities have risen sharply over the past year due to disappointing harvests and growing demand for food supplies. According to the FAO, grain prices rose again by 3.2 per cent in October. Wheat even became 5 per cent more expensive, reaching its highest level since November 2012.
World vegetable oil prices rose by an average of 9.6 per cent in October. Palm oil became much more expensive due to shortages in the labour market in Malaysia, which severely hampered production. In contrast, sugar prices fell for the first time in six months.
The FAO also revised its forecast for global grain production from 2.800 billion tonnes, predicted a month ago, to 2.793 billion tonnes. The UN states that that would still be a record yield. However, it would still fall short of anticipated demand.
