Food prices rose slightly in October, marking a significant rise over this time last year, according to the UN Food and Agriculture Organisation (FAO).

The FAO’s Food Price Index, released on Thursday, shows that overall prices of a range of foodstuffs were 0.7% higher in October than September, and 9.1% higher than they were a year ago. Apart from a dip in July, food prices have risen continuously throughout 2016.

This month’s index showed grain prices rose for the first time in three months in October, though rises in sugar and dairy prices drove prices higher overall.

Sugar Prices rose by 3.4 percent, due to concerns over production in Brazil and India. Dairy prices increased by 3.9% on increased demand and reduced production. Cereal prices rose by 1%, led by tightening supplies of high-quality wheat even as the the FAO raised its estimates for world wheat production.

Meat and oils prices fell by 1% and 2.4% respectively.

Production estimates

FAO raised its predictions for World cereal production for 2016, which it now estimates at 2,571 million tonnes, up marginally from last month’s forecast and 1.5 percent above the 2015 output. Significant increases in world wheat production (now pegged at 746.7 million tonnes), led the rise.

Russia is expected to record a record wheat harvest this year.

Though wheat and barley production has risen this year, FAO estimates that the global maize crop will be 4.8 million tonnes smaller in 2016, due to falls in production in Brazil, China the EU and United States.   

Early signs from the planting of the 2017 winter wheat crop in the northern hemisphere indicate that U.S. farmers are reducing the area because of  low price prospects and a subdued export outlook due to a stronger U.S. dollar. However, wheat plantings in Russia and Ukraine are ahead of last year's pace. In the Southern hemisphere, summer planting in Argentina has seen a rise in the maize area.

FAO said world cereal stocks are likely to increase this year, even though demand for animal feed is set to grow.