JAKARTADAILY.ID - According to the index released by the Food and Agriculture Organization of the united nations (FAO), prices increased in October for the third month in a row, representing a 3% increase in September.
The FAO Food Price Index records the monthly changes in the number of commodity products caused by various factors, such as supply disruptions, high raw material prices, site closures, and political tensions.
A missive about stockpiling food from China's Ministry of Commerce to ensure that their citizens have an "adequate supply" of essentials this winter earlier this week ironically sparked mass panic buying.
Currently, food supplies and prices are rising under the pressure from extreme weather, snarled supply chains, worker shortages, and rising costs. This includes barley, rice, and corn. Due to high demand, dairy prices saw an increase of 2.5%.
The price of wheat went up by 5% in October due to the subsiding numbers of the crops in key exporters countries, including Canada, Russia, and the US. Meanwhile, the FAO crop oil price index increased by 9.6% in October to an all-time high.
Meanwhile, the lack of migrant workers has caused subdued manufacturing in Malaysia, fueling concerns on plan oil prices. The United Kingdom also suffers from worker shortages exacerbated by Brexit, forcing fast-food chains to remove popular menu items.
Major brands like Unilever, Kraft Heinz, and Mondelez have all reportedly raised the prices of popular items.