Article / 06 October 2016 at 13:30 GMT

Food inflation excluding rice and wheat picking up

Head of Commodity Strategy / Saxo Bank
  • 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. 

UN FOA food prices
 Additional reading from UN FAO's website

— Edited by Clemens Bomsdorf

Ole Hansen is head of commodity strategy at Saxo Bank


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