Global Food Prices Soar to Decade-High Amid Growing Demand and Adverse Weather

Food prices around the globe increased for the second consecutive month in September to the highest in a decade, amid adverse weather and growing global demand.

The Food and Agriculture Organization of the United Nations’ (FAO) food price index jumped 130 points in September to the highest since 2011, as food prices advanced 32.8% from year-ago levels. The overall growth in food prices was primarily attributed to price surges for vegetable oils, cereals, and sugar, as some producing regions experienced dismal harvest conditions.

The price index for vegetable oil was up 1.7% between August and September, and has risen by about 60% year-over-year, as uncertainty over labour shortages in Malaysia sent palm oil costs higher. The cereal price index was 2% higher last month, as strong demand around the globe significantly outpaced export supply. The FAO estimates that…