Global food prices are expected to accelerate in the coming months and persist into 2027, as war-related shipping disruptions and El Niño-driven drought strain cereal supplies. Rice prices in Indonesia have hit record highs, bread in Egypt has risen by a quarter, and sugar prices in India reached an all-time high. According to the World Bank, food prices in the September quarter outpaced headline inflation in 22 per cent of the 150 countries it analyzed, up from 14 per cent in the previous quarter. The FAO Food Price Index averaged 136 points in September, its highest reading since November 2022. Analysts warn that record grain stocks are thinning and a surge in import demand could follow, raising the risk of social unrest and export bans.
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Related tickers and likely impact
DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 101.78 |
| Change that session | -0.20% |
XAU/USD
▲ Likely positiveRelevance: low
| Market | Gold |
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| Close on 10/16/2026 | 4,165.63 |
| Change that session | -0.13% |
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- Global food prices set to climb as shipping shocks squeeze supplies
Global food prices are expected to accelerate in the coming months and stay high into 2027, as war-related shipping disruptions and El Nino-driven drought squeeze cereal supplies. Rice prices in Indonesia have hit record highs, bread costs in Egypt have risen sharply, and sugar prices in India reached an all-time high. The FAO Food Price Index averaged 136 points in September, its highest since November 2022. The World Bank found food prices in the latest quarter outpaced headline inflation in 22% of 150 countries analysed, up from 14% previously, hitting the poorest consumers hardest.
- Global food inflation is expected to intensify as supply shocks pile up
Global food inflation is expected to accelerate in the coming months and persist into 2027, as war-related shipping disruptions and El Nino-driven drought squeeze cereal supplies. The FAO Food Price Index averaged 136 points in September, its highest since November 2022, and the World Bank found food prices rose faster than headline inflation in 22% of 150 countries in the September quarter, up from 14% previously. Wheat prices are up more than 30% in 2026, rice prices in key Asian exporters have risen 10% to 13%, and Indonesia's rice prices have hit record highs. The poorest consumers in low- and middle-income countries are hit hardest, raising the risk of social unrest and export bans, and freight rates on some key routes have risen about 50%.
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