World food prices fall from all-time high, easing for sixth month in a row

World food prices fell for the sixth straight month in September, United Nations data showed, receding from all-time highs reached earlier this year in the wake of the Russian invasion of Ukraine.

A grain seller waits for customers in a market in Rabat, Morocco. © AFP/Fadel Senna

The UN's Food and Agriculture Organisation (FAO) said its price index, which tracks the monthly change in international prices of a basket of food commodities, averaged 136.3 points in September, a 1.1 percent drop from August.

The index was nonetheless 5.5 percent higher than in September 2021.

The monthly decline was driven by a "sharp fall" in the prices of vegetable oils, FAO said. There were also moderate decreases in the prices of sugar, meat and dairy products.

🔴 @FAO Food Price Index drops for the 6th consecutive month in Sept, 🔻1.1% from Aug, but still 5.5% higher than a year ago.

45 countries flagged as in need of external assistance for food.

Global cereal production forecast for 2022 lowered by 1.7%.https://t.co/Hj6oalv7pd

— FAO Newsroom (@FAOnews) October 7, 2022

The declines more than offset a rebound in cereal prices.

FAO said wheat prices jumped due to "heightened uncertainty" about the continuation beyond November of a UN-brokered deal that has allowed Ukraine to ship grain via the Black Sea.

The deal lifted a Russian blockade that has raised fears of famine in nations reliant on grain from Ukraine, one of the world's breadbaskets.

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Drought conditions in Argentina and the United States have also contributed to the increase in global cereal prices.

FAO lowered its world cereal production forecast for this year, with a decline of 1.7 percent on last year's figures expected.

The agency said 45 countries, including 33 in Africa, nine in Asia, two in Latin America and the Caribbean, and one in Europe "are in need of external assistance for food".

Droughts have created an especially serious situation in East Africa, FAO said.

The UN warned in September that more than 1 million people are at risk of famine without humanitarian aid.

(With newswires)