Global Food Prices Surge to 18-Month Peak Amid Vegetable Oil Crisis

Global food prices spiked to an 18-month high in October, driven by a surge in vegetable oil prices, according to the United Nations FAO. The overall price index rose by 2% from September, with increases observed across most staples. However, meat prices saw a slight decrease.

In October, global food prices soared to an 18-month high, propelled by significant increases in vegetable oil prices, reported the United Nations' Food and Agriculture Organization (FAO) on Friday.

The FAO's price index, which monitors internationally traded food commodities, rose to 127.4 points, marking a 2% increase from a revised 124.9 points in September. This index is now 5.5% higher than a year ago, reaching its highest point since April 2023, although still 20.5% below a record set in March 2022 following the Russian invasion of Ukraine.

While prices in nearly all categories increased, meat was an exception, with a slight 0.3% decline. Most notably, vegetable oil prices surged over 7%, influenced by palm oil production concerns, while sugar prices witnessed modest growth spurred by production outlook uncertainties in Brazil. Rising demand and limited supply supported higher dairy prices, while wheat and maize also faced increases.

(With inputs from agencies.)