FAO reports 5.8% year-on-year rise in global food prices

The UN Food and Agriculture Organization (FAO) reported a 1.5% increase in global food prices in September, marking a 5.8% rise compared to the same period last year. The surge was primarily driven by higher prices for cereals, vegetable oils, and sugar.

Cereal prices climbed 5.1% during the month and 17.2% year-on-year, with trade disruptions in the Black Sea region and limited wheat and corn exports identified as key factors. Vegetable oil prices also saw a modest increase of 0.9% month-on-month and a significant 18.3% rise year-on-year, largely due to rising palm oil costs.

Sugar prices reached their highest level since April 2025, increasing 6.1% in September and 14.7% year-on-year. The FAO attributed this rise to forecasts of reduced global sugar supplies next year. Meanwhile, dairy prices remained stable, and meat prices declined during the month.