The UN Food and Agriculture Organization (FAO) announced on Nov. 4 that the UN index for international food prices has hit its highest level in over a decade.
The FAO Food Price Index, which tracks the international prices of a basket of food commodities, went up by 3.9 percent from September at an average of 133.2 points in October. On an annual basis, the index went up 31.3 percent.
The figure was the highest since July 2011 and was primarily led by high world prices of vegetable oils and cereals that went up month-on-month by 9.6 percent and 3.2 percent, respectively.
Harvest setbacks and high oil prices pushed the prices of agricultural commodities. For vegetable oil, the increase was also “driven by firmer price quotations for palm, soy, sunflower and rapeseed oils.”
On the prices of cereals, which are made with wheat, FAO explained: “Tighter availability in global markets due to reduced harvests in major exporters, especially Canada, the Russian Federation and the United States of America, continued to put upward pressure on prices.”
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