▲ A corn farm in the United States
The global food price index has risen for the third consecutive month.
The Food and Agriculture Organization (FAO) analyzed that upward pressure is being exerted on food prices due to logistical disruptions caused by the ongoing wars in Ukraine and Iran, combined with weather factors such as heatwaves, droughts, and El Niño.
According to the FAO on October 2, the global food price index for September stood at 136.0, up 1.5% from the previous month of August (134.0).
The August index was initially announced at 133.3 before being revised.
The September index increased by 5.8% compared to the same month last year, marking the highest level since November 2022 (136.0).
Maximo Torero, Chief Economist at the FAO, stated, "Logistical disruptions in the Strait of Hormuz and the Black Sea, combined with climate shocks, are putting pressure on energy, transport, and major food commodity prices, leading to a sustained and increasingly widespread rise in global commodity prices."
He added, "If these pressures persist, they will soon be passed on to consumer food prices, with the impact being particularly pronounced in countries heavily reliant on food and energy imports."
The FAO monitors international price trends for 24 items and compiles and announces food price indices monthly across five commodity groups: cereals, vegetable oils, meat, dairy, and sugar.
The index is calculated by comparing prices against a baseline of 100, which represents the average price from 2014 to 2016.
This year's index started at 124.1 in January, showed an upward trend to reach 131.0 in April, declined to 130.1 in June, and then returned to an upward trend in July.
However, it remains below the record high of 160.2 recorded in March 2022 in the wake of Russia's invasion of Ukraine.
Among the five commodity groups for September, cereals, vegetable oils, and sugar indices increased, while meat and dairy indices declined.
In particular, the September sugar price index rose 6.1% from August and 14.7% from September of last year.
Key factors cited include reduced sugar production in Thailand due to below-average rainfall and intensifying El Niño conditions, gloomy harvest forecasts in India, heavy rainfall in the central-southern sugarcane-growing regions of Brazil, and a reduction in sugar beet cultivation area in the European Union (EU).
The cereal price index also rose 5.1% from August, standing at an average of 17.2% higher compared to September of last year.
Global wheat prices rose 6.3%, reaching their highest level since August 2023.
This was driven by logistical constraints in the Black Sea region and dry weather ahead of planting in parts of North America.
(Photo: AP, Yonhap News)
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