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World Food Prices at 10-Year Peak

  • By Al Mayadeen
  • Source: Agencies
  • 7 Oct 2021 16:00

The United Nations Food and Agriculture Organization (FAO) reports that food prices have hit a 10-year peak, with its food price index averaging 130 points last month.

  • A sales assistant arranges fruit at the produce section in the supermarket at the SM City Bacoor shopping mall in Bacoor, the Philippines | Bloomberg
    A sales assistant arranges fruit at the produce section in the supermarket at the SM City Bacoor shopping mall in Bacoor, the Philippines (Bloomberg). 

Food prices have risen for the second consecutive month in September, reaching their highest reading since 2011. The price increase was mainly due to the hike in the prices of cereals and vegetable oil.

The UN agency projected a record-high cereal production across the globe in 2021. However, the FAO said this would be outpaced by forecast consumption.

The FAO's cereal price index had a 2.0% increase between August and September, leading to a 4% increase in wheat prices.

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"Among major cereals, wheat will be the focus in the coming weeks as demand needs to be tested against fast-rising prices," a senior economist at the FAO said.

World vegetable prices had a 1.7% increase from August, and the FAO saw that oil prices were showing a year-on-year increase of 60%.

The FAO's food price index, which tracks international prices of the world's most traded food commodities, averaged 130 points in September - its highest reading since September 2011. The food index rose 1.5 points in September from August's 128.5.

FAO revealed that Global cereal stocks were projected to ease in 2021-2022. However, it would still be "at a comfortable level."

  • United Nations
  • Food Prices
  • FAO
  • Food and Agriculture Organization

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