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World wheat, sugar and cooking oil prices rose again in September
The UN's food price index rose 1.5% in September. Cereals were 17.2% dearer than a year ago, and sugar and vegetable oils were up too - the raw materials of millers, bakers and oil packers.
Prices+17.2%
world cereal prices in September against a year earlier (FAO)
The UN Food and Agriculture Organization’s Food Price Index averaged 136.0 points in September, up 1.5% on August and 5.8% on a year earlier, the FAO said on 2 October.
Cereals led the rise: up 5.1% in the month and 17.2% on the year. Wheat rose 6.3% in the month to its highest since August 2023, and maize 5.6% to its highest in more than three years.
Sugar rose 6.1% in the month and was 14.7% dearer than a year earlier. Vegetable oils were up 0.9% on August and 18.3% on the year, with palm oil higher. Dairy and meat prices eased slightly.
In Kenya
In its rate statement on 7 October, the Central Bank noted that food inflation in the major economies rose in September on edible oils, cereals and sugar. At home, it said core inflation rose to 4.0%, mainly on milk, wheat products and cooking oil.
Why it matters
- Millers, bakers, confectioners and edible-oil packers buy these at world prices, much of it imported, so world moves reach their costs.
- Imported wheat and oil are priced in dollars, so the shilling’s rate matters as much as the world price.
- The FAO publishes the index early each month; October’s figures come out in early November.
Sources
- FAO - Food Price Index, September 2026 · 2 October 2026
- Central Bank of Kenya - Monetary Policy Committee press release · 7 October 2026
