Commodities & Metals

World Food Prices Spike

World food prices rose 6% in October compared to the same month in 2018, a sign of inflation in a global environment in which inflation has been muted for years. Sugar prices and cereals drove the increase.

According to the Food and Agriculture Organization of the United Nations, the FAO Food Price Index averaged 172.7 points in October. The measure “tracks monthly changes in the international prices of commonly traded food commodities.”

The Cereal Prices Index rose 4.2%, due to a rise in exports of wheat and maize. The Sugar Price Index rose 5.8% in October. Most of this was caused by forecasts that Thailand and India will grow less sugar-producing crops. India is the world’s largest sugar producer. Thailand is the world’s largest sugar exporter.

Overall, food prices were up for the first time in five months, the agency reported.

Weather will affect prices next year:

Looking to 2020, rainfall shortages may hamper the sowing of crops, including wheat in the European Union and maize in South America. The weather outlook is generally favourable for crop plantings in the Russian Federation and South Africa.

According to the UN:

The Food and Agriculture Organization (FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger.

Our goal is to achieve food security for all and make sure that people have regular access to enough high-quality food to lead active, healthy lives. With over 194 member states, FAO works in over 130 countries worldwide. We believe that everyone can play a part in ending hunger.