Food Prices Climb Amid El Niño Threat

Global food prices rose by 1.5% in September and 5.8% year-over-year, driven by cereals and sugar amid Black Sea trade disruptions, extreme weather, and a strengthening El Niño expected to threaten supply through 2027.

In Mexico, annual inflation reached 3.42% in the first half of September, driven by higher tomato, onion, and chicken prices.

The FAO Food Price Index averaged 136 points in September, up from 133.8 in August, but still 15.1% below its peak in March 2022.

The El Niño phenomenon is expected to exacerbate supply shocks, particularly for countries like Mexico that rely heavily on imports and exports of grains and oilseeds.