Global food prices experienced their fastest rise in over a year, with the Food and Agriculture Organization (FAO) reporting a 3% increase in the FAO Food Price Index for September, bringing the index to 124.4 points. This marks the highest level since March 2022.
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The primary driver of this increase is a significant 10.4% surge in sugar prices, largely caused by adverse weather conditions in Brazil. Prolonged dry spells and destructive fires in late August severely affected Brazil’s sugarcane crops, creating a supply shortage. Additionally, concerns about India’s sugar exports, following the government’s decision to prioritize ethanol production from sugarcane, further strained global supplies.
Other commodities also saw price increases, with vegetable oil prices rising 4.6%, and the cereal index growing by 3%. Despite these recent upticks, the overall food price index remains 22.4% lower than its peak after Russia’s invasion of Ukraine, which had caused significant disruptions to global food markets in 2022.
