06 October 2016 at 13:30 GMT
- Basic food products are getting increasingly expensive
- Year-on-year prices rose by 10% reaching their highest since March 2015
- Sugar added most to the price increase
Global food prices are on the rise, but that does not hold
for basic cereals such as rice. Photo: iStock
By Ole Hansen
The United Nations Food and Agriculture Organization (UN FAO) has released its Food Price Index for September posting a 2.9% rise on August and was 10% above the corresponding months last year.
The index has rising in all but one of the past eight months and the latest reading was the highest reading since March 2015. As the charts below shows the rise has been driven by a surge in sugar prices, with dairy products, meat and oils also adding to rise.
From a food security perspective it is worth noting that the most important category of cereals which comprises key food components such as wheat and rice reached the lowest level in more than ten years. This was driven by ample global supplies of wheat combined with an expected rebound in global rice production.
The FAO Food Price Index measures the monthly change of a basket of 55 food commodities divided into five groups.
from UN FAO's website
— Edited by Clemens BomsdorfOle Hansen is head of commodity strategy at Saxo Bank