Food Prices

The FAO Food Price Index rose 2 percent in October to reach its highest level since April 2023. However, the Index remained 20.5 percent below the record high seen in March 2022.

Over the past two months, India has removed several of its restrictions affecting rice exports, some in place since September 2022. This is welcome news for rice importing countries, which for the past year have had to seek alternative suppliers at significantly elevated prices.

Japan faced a rice shortage during the summer of 2024, sparking confusion among consumers as supermarket shelves emptied. While low stock levels of rice and tight supply before the October harvest are normal, several factors combined to exacerbate this crisis. Total rice production was normal in 2023, but unseasonable weather reduced the ratio of high-quality rice in overall output.

In September, the FAO Food Price Index saw the largest month-on-month increase since May 2022, rising 3 percent from August. While the Index is 2 percent higher than its September 2023 level, it remains over 22 percent below its March 2022 peak.

The FAO Food Price Index declined slightly in August due to falling sugar, meat, and cereal prices. The Index was just over 1 percent lower than its August 2023 value and nearly 25 percent below the peak reached in March 2022.