Global Desk: Food prices surged worldwide in October, with the United Nations’ Food and Agriculture Organization (FAO) food price index hitting its highest level in 18 months.
The FAO’s index, which tracks the prices of key food commodities, rose sharply last month, led by a significant increase in the price of vegetable oils.
Compared to September, prices for most food items increased, with the exception of meat.
The FAO food price index for October stood at 127.4 points, marking its third consecutive monthly rise since July. The index is based on the prices of meat, dairy, cereals, vegetable oils, and sugar.
Among the key food items tracked, meat prices saw a slight decrease. The meat index fell from 120.8 points in September to 120.4 points in October.
Dairy prices, on the other hand, rose, with the dairy index climbing from 136.5 points in September to 139.1 points in October.
Cereal prices also saw a modest increase, with the cereal index rising from 113.6 points in September to 114.4 points in October.
The most significant increase, however, was in the price of vegetable oils, which surged by more than 10 points, from 142.4 in September to 152.7 in October.
This represents a 7.3% rise in vegetable oil prices, bringing them to the highest level in two years. Prices for palm oil, soy oil, and sunflower oil all saw increases.
The global price of cereals rose by 0.8% in October, largely due to adverse weather conditions affecting major wheat-producing countries, driving up wheat prices.
In contrast, the price of rice dropped last month by 5.6%, following India’s decision to ease its rice export ban, leading to a decline in global rice prices.
The price of meat also fell by 0.3% in October. According to FAO, this was due to reduced demand and increased supply, which led to lower prices for poultry and pork in international markets.
Meanwhile, food inflation in Bangladesh has surged to 12.66% in October. Despite several hikes in policy interest rates by the Bangladesh Bank, the central bank has been unable to rein in inflation effectively.