Food prices have risen to a new global peak, reaching their highest level since July 2011 and extending the 30% increase recorded last year, according to the latest United Nations Food and Agriculture Organization report. Food and Agriculture (FAO).
The FAOFoodPrice Index, which tracks the international prices of a basket of food goods, found that in October, the cost of a basket of food rose by 3% compared to the previous month.
Prices were said to have been pushed up by high commodity prices, worldwide supply disruptions and factory closures, along with political tensions.
The FAO cereal price index rose 3.2%, while the price of wheat rose 5% due to reduced harvests by major exporters such as Canada, Russia and the US. The organization also found that international prices of other major grains had risen.
The price of vegetable oil reached an all-time high of 9.6% in October, marking the fourth consecutive month of price increases. Vegetable oil prices were mainly supported by continued concerns about subdued production in Malaysia due to a continued shortage of migrant labour, FAO said.
Meanwhile, milk prices rose by 2.5%, while the price of meat fell by 0.7%, 'marking the third monthly decline'. After six consecutive months of increases, sugar prices also fell by 1.8% due to limited global demand and large surpluses for export.
