For a year and a half, world food prices have reached their maximum

In October, world food prices reached their highest level in 18 months.

This is caused by a sharp increase in prices for vegetable oils, reports the UN Food and Agriculture Organization (FAO). In October, the FAO Food Price Index was 127.4 points, up 2.0% from September and 5.5% higher than in 2023. At the same time, the index remained 20.5% below the maximum value recorded in March 2022.

The FAO Vegetable Oil Price Index rose 7.3% in October to a two-year high, driven by higher prices for palm, soybean, sunflower and rapeseed oil, driven primarily by concerns about production volumes.

In October, the Cereal Price Index increased by 0.9% due to rising export prices for wheat and corn. The sugar price index increased 2.6% as concerns remained over the outlook for Brazil's sugar production in the 2024-2025 season due to prolonged dry weather conditions.

The dairy price index rose 1.9% in October, an average increase of 21.4% from the same period last year. The growth was due to an increase in world prices for cheeses and butter, and prices for milk powder decreased.

The meat price index, contrary to the general upward trend, decreased by 0.3% compared to September, mainly due to lower pork prices due to increased slaughter volumes in Western Europe amid weak domestic and international demand.

It is worth noting that for the fourth day in a row, palm oil has reached its highest level in the last two years. writes Bloomberg, thanks to strong demand amid concerns about supply cuts. Strong demand, coupled with supply issues due in part to aging trees, has pushed palm oil prices up more than 30% in 2024.

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