International basket of food prices up 3% in October: FOA
The UN food agency said on Thursday that world food prices are the highest since July 2011, reflecting a reduction in wheat harvests by major exporters and higher palm oil prices.
The Rome-based Food and Agriculture Organization (FAO) said international prices for its basket of food commodities rose 3% in October, the third straight month increase.
Wheat prices rose 5% on reduced harvests by big exporters such as Canada, Russia and the United States, while the vegetable oil price index rose 9.6% in October, the highest level ever. The FAO said the shortage of migrant workers in Malaysia was a factor in that increase.
Italy, a major exporter and consumer of pasta, fears product prices could rise for the year-end holidays. Italy imports about 40% of its durum wheat with its major supplier, Canada, to help produce its pasta.
Experts have said that the price of a package of pasta can increase by about 20 euro cents (about 24 US cents), which, for many popular brands, can translate into a 15 to 20% increase in a product that many Italians consume daily.
The agency’s grain price index rose 3.2% from September to October.
In line with the agency’s forecast, the FAO said global grain inventories are “heading towards contraction in 2021/22”. The forecast reflects a cut in wheat production projections in Iran and Turkey as well as the US.
Higher energy costs and supply chain prices have also been cited for the rise in food prices faced by consumers.
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