Global food prices rose for the fourth consecutive month in November, the Food and Agriculture Organization of the United Nations (FAO) said, to remain at their highest levels in ten years, affected by strong demand for wheat and dairy products.

The organization explained that the food price index, which tracks the global prices of the most traded food commodities in the world, averaged 134.4 points last month, compared to 132.8 points in October. The October reading was revised from 133.2 points.

The November reading is the highest on the index since June 2011. The index rose on an annual basis by 27.3 percent last month. Agricultural prices rose sharply last year due to crop failures and rising demand.

The grain price index increased by 3.1 percent in November, compared to the previous month, and increased by 23.3 percent year on year, as wheat prices recorded their highest levels since May 2011.

The FAO said wheat prices were supported by concerns about off-season rains in Australia and uncertainty about possible changes in export procedures in Russia.

The dairy index recorded the highest monthly increase, rising 3.4 percent from the previous month.Image

The FAO said the sugar price index rose 1.4 percent month-on-month and 40 percent year-on-year.

The organization added that the meat price index fell for the fourth consecutive month, declining 0.9 percent on a monthly basis. Vegetable oil prices fell 0.3 percent from the previous month.

(Reuters)