ROME — Global food prices continued to rise in November, although the rate of increase moderated and prices for grains and cereals—the largest component of the index—declined.
The monthly index published by the United Nations Food and Agriculture Organization (FAO) indicated substantial increases in each of the preceding three months. Including November, prices had risen in nine out of the previous ten months, a trend attributed to extreme weather conditions in critical agricultural regions and escalating fuel and transportation costs.
However, the increase observed in November was marginal, at 0.5 percent, and exhibited variability, with three of the five sub-indexes experiencing declines.
The most significant change in the index was noted in the vegetable oils category, where prices surged by 7.5 percent, reaching their highest point in over two years. The FAO reported that prices for palm, rapeseed, soybean, and sunflower oils all increased due to persistent concerns regarding below-average global supply, stemming from intense rainfall in Southeast Asia and heightened import demand.
Dairy prices also registered an increase, rising by 0.6 percent, driven by increased demand for milk powders coupled with reduced production in Western Europe. These two increases sufficiently counterbalanced the decreases noted in all other sub-indexes.
Prices for grains and cereals were recorded at 2.7 percent lower than their levels a month prior and 8.0 percent lower than in November 2023. The FAO indicated that rice prices dropped by 4.0 percent due to increased market pressures, while wheat prices fell slightly. Corn prices remained stable, while barley and sorghum prices experienced minor declines.
Moreover, the FAO reported that sugar prices decreased by 2.4 percent in November compared to October, reversing some of the gains recorded in the preceding two months. Conversely, meat prices were found to be 0.8 percent lower.
The next release of the monthly FAO index, which will conclude the assessment of global food prices for 2024, is scheduled for January 3, 2025.
