FAO reports highest global food prices in 18 months, driven by oils and sugar

The UN’s Food and Agriculture Organization (FAO) reported a significant rise in global food prices in October, reaching their highest level in 18 months.

The FAO Food Price Index increased by 2% to 127.4 points, driven mainly by a surge in vegetable oil prices (up 7%) due to concerns over palm oil production, and a 2.6% rise in sugar prices amid expected declines in Brazil’s 2024-2025 output.

The report also highlighted increases in dairy and grain prices, while meat prices, particularly poultry, saw a slight decline. Despite the upward trend, food prices remain 20.5% below their peak in March 2022. FAO also lowered its 2024 global grain production forecast slightly to 2.848 billion tons.