What happened
Global food prices have increased due to shipping disruptions and dry weather. The UN Food and Agriculture Organization reported a 1.5% rise in its Food Price Index in September, driven by higher prices for cereals and sugar.
The increase in cereal prices was largely due to transport constraints in the Black Sea region and dry weather in North America. Sugar prices also rose due to expectations of tighter global supplies. Meanwhile, meat and dairy prices fell, with the meat price index declining 1.1%.
The FAO chief economist warned that sustained pressures on global commodity prices could lead to higher consumer food prices, particularly in countries that rely heavily on food and energy imports. The organization also noted that a strengthening El Niño weather pattern is creating uncertainty for crop production, particularly for rice in South and Southeast Asia.
