Global food prices hit highest since march 2022

In September 2024, global food prices saw the largest increase in 2.5 years, with a 3% rise in the FAO Food Price Index, marking the highest surge since March 2022. Key factors driving this increase include severe weather conditions, geopolitical instability in the Middle East, and disruptions in global supply chains.

In September, global food prices increased by the most in 2.5 years, with terrible weather and geopolitical uncertainties threatening to keep consumer costs high for much longer.

According to data, the UN Food and Agriculture Organisation’s index of food commodity prices has risen to its highest level since August of last year. The gauge, which analyses the cost of grains, sugar, meat, dairy, and vegetable oils, increased by 3%, the most since March 2022. Following Russia’s invasion of Ukraine, the index rose more than 13% that month.

While the index analyses raw commodity costs rather than retail prices, the surge could imply that higher food prices will continue to hurt consumers as severe weather in key growers and escalating tensions in the Middle East threaten to disrupt food markets.

Although the index has fallen from a record high set in the aftermath of the Russian strike, indicators of restricted supplies and bottlenecks in global shipping routes have fuelled a renewed upward push for food prices.

Sugar prices rose the most, reflecting evidence of a poor crop in Brazil and fears over India’s export capabilities. Vegetable oil and grain prices rose significantly as a result of fewer supplies of commodities such as wheat, palm, sunflowers, and rapeseed.