World food prices surge for first time in 19 months: FAO

World food prices registered their first significant rise in 19 months in October, the Rome-based United Nations Food and Agriculture Organization reported Thursday, as extreme weather in parts of the world raised worries about possible supply issues.

The overall FAO food price index averaged 162 points in October, up 3.9 percent compared to September. It was the third time prices rose in the last 19 months, but the previous rises were 0.6 percent or less.

FAO said adverse weather was behind sharp rises in sugar, palm oil, and dairy prices.

Prices for grains and cereals, the biggest component in the index, rose as well, though only by 1.7 percent, due mostly increases in prices for wheat and corn. Rice prices actually fell, due mostly to lower prices for fragrant and Japonica rice.

Meat prices were unchanged compared to September.

But it was sugar prices (up 17.2 percent), oils and fats (up 6.2 percent), and dairy (up 9.4 percent) that pushed the index higher.

FAO said that if extreme weather, especially in Asia and Central America, continued, prices too could continue to rise, ending a period of unusual stability that stretched back to early last year.

The next installment of the FAO index, which is based on a basket of 55 goods and 73 price quotations in five major food commodity groups, will be released on Dec. 3. Endit