The United Nations Agriculture and Food Organization (FAO) has indicated an increase in global food prices. According to recent statistics of the FAO Food Price Index (FPI) released on 8th September 2016, overall, there is a 1.9% increase in food prices from July to August 2016 and a 7% rise compared to August 2015, with the FPI at its highest level in 15 months. The report also indicate that in August 2016, average global dairy, vegetable oil, sugar and meat prices all rose, but cereal prices fell. Vegetable oil prices also increased considerably by 7.4% driven mostly by stronger palm oil prices that were caused by rising imports demand by China, India and the European Union.The report further indicate that sugar prices are also performing well, rising by 2.5% from July to August to reach their highest level in almost six years. According to FAO, a key driver in all this has been a stronger Brazilian currency which hindered exports and led many local producers to sell to domestic markets.The cereal price index was the only commodity index to fall last month, with a decline of 3% from July and now sitting at 7.4% below the FPI in August 2015Source: MITC, 9th September, 2016.