Global food prices see largest 1-month surge since 2022: FAO

Global food prices surged to their largest one-month increase since 2022 in September, driven by extreme weather that put upward pressure on major food commodity categories, the United Nations Food and Agriculture Organization (FAO) reported on Friday, said Xinhua.

The FAO said its broad Food Price Index rose by 3 percent compared to August levels, marking the largest month-on-month increase since March 2022, when food prices spiked due to energy and supply disruptions related to the start of the Russia-Ukraine conflict.

This time, various factors contributed to the price hike, primarily concerns about severe weather. This led to a 3-percent increase in prices for grains and cereals, the largest component of the overall index, reversing a three-month trend of decline.

Unusually wet conditions in Canada and the European Union drove wheat prices higher, while low water levels in Brazil and the United States affected corn production, the FAO reported.

Meanwhile, sugar prices surged by 10.4 percent due to dry weather and wildfires in Brazil, the world's leading producer. India's decision to lift limits on sugarcane used for ethanol production also contributed to the price surge, according to the FAO.

Meat prices increased by 0.4 percent due to trade factors, including higher demand for Brazilian poultry and reduced demand for ovine meat from China.

Dairy prices rose by 3.8 percent due to stronger demand from Asia, which offset higher production levels in Oceania. Prices for vegetable oil increased by 4.6 percent, reaching their highest level in 18 months. The FAO noted that vegetable oil prices were driven up by reduced output in Asia and the United States.

With increases across all major sub-indexes, the broad FAO Food Price Index was 2.1 percent higher than its level a year ago, though it remained 22.4 percent below the all-time high reached in March 2022.