FAO reports rise in global food price index
The UN Food and Agriculture Organisation (FAO) reported on Friday that its global food price index increased by 2 per cent in October compared to the revised September rate, marking the highest level since April 2023.
The FAO Food Price Index (FFPI) averaged 127.4 points in October 2024, a 2 per cent rise from its revised September level. This marks the highest index reading since April 2023, driven by a broad increase in food prices across multiple commodities.
Price quotations for all commodities in the index, with the exception of meat, saw an upward trend. Vegetable oils led the charge, recording a significant 7.3 per cent increase. This rise in prices reflects supply chain disruptions, adverse weather conditions, and fluctuations in global production, all contributing to higher commodity costs.
Compared to historical trends, the FFPI for October was 5-6 per cent higher than its corresponding value from a year ago, indicating a continuing upward trajectory in food costs. However, it still remains 20.5 per cent lower than its peak of 160.2 points, which was reached in March 2022, during the height of global supply disruptions linked to the pandemic and geopolitical tensions.
The FAO’s findings underscore ongoing challenges in global food security, with price volatility continuing to impact consumers worldwide.