The rise of commodity prices is fueled by harvest setbacks and strong demand.

Poor harvests have contributed to rising grains prices, while strong demand has lifted vegetable oil prices.
Poor harvests have contributed to rising grains prices, while strong demand has lifted vegetable oil prices. (LINDSEY PARNABY / AFP / POOL / AFP)

Global food prices have skyrocketed for a third straight month in October, reaching a fresh 10-year peak.

The Food and Agriculture Organization's (FAO) said on Thursday that price hikes were lifted by rising costs of cereals and vegetable oils.

The FAO's food price index, which tracks international prices of the most globally traded food commodities, averaged 133.2 points last month compared with a revised 129.2 for September.

The September figure was previously given as 130.0.

Rising price trend

The October reading was the highest for the index since July 2011. On a year-on-year basis, the index was up 31.3 percent in October.

Agricultural commodity prices have risen steeply in the past year, driven by harvest setbacks and strong demand.

Tight supplies of some of the most common foodstuffs have helped drive the rally, which shows little sign of easing.

Poor harvests have contributed to rising grains prices, while strong demand has lifted vegetable oil prices.

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