According to United Nations' Food and Agriculture Organization, the global food prices ascended in September without precedent for a year and a half, fact which began by the rising of the prices of the sugar and the dairy products.
As referred to the monthly report of the Organization of Food and Agriculture of the United Nations, there has been an inflation to the FAO’s Food Price Index from 155.1 to 156.3 in August, profit under 1%.
After seven years, this one was the most acute monthly drop which denotes a turnaround from August when costs dove 5.2%. However, in comparison with a year ago, the Index is down 18.9% and is fluctuating around a six-year low because of overproduction and decreased interest.
After the rises in sugar and dairy, which had both enrolled especially abrupt falls in August, an inversion has come.
To be more precise, the FAO Sugar Price Index saw a progress of a 3.2% from August, as to a 10% drop the last month. Just as the report highlights, due to the doubts about the effect of the El Niño weather phenomenon on Brazil, the world's biggest maker, the costs have been increasing. Moreover, it stated that reductions in cane cropping would likewise expand the shortage for the coming season.
According to a statement of the U.N., the Dairy Price Index pushed 5% higher from August, after a 9.1% drop, as dairy ranchers in New Zealand paused the production to protest against the low costs.
In the meantime, the Cereal Price Index and the Meat Price Index remained to a great extent fixed. As far as the Vegetable Oil Price Index, it was slightly beneath a month ago's level, hitting its most reduced cost since March 2009.