Global food inflation hit more than 3 year high in April, says FAO

Global food prices rose in April to their highest level in more than three years, driven largely by a sharp increase in vegetable oil prices amid the ongoing Iran conflict and disruptions around the Strait of Hormuz, according to the latest data released by the Food and Agriculture Organization (FAO).The FAO Food Price Index, which tracks monthly changes in international prices of a basket of globally traded food commodities, rose for the third consecutive month in April to average 130.7 points. The index was up 1.6 per cent from its revised March level and reached its highest point since February 2023.
FAO Chief Economist Máximo Torero said elevated vegetable oil prices were being fuelled by higher energy costs, which in turn were boosting demand for biofuels derived from oil-rich crops and organic materials.The FAO’s vegetable oil price index surged 5.9 per cent month-on-month in April, reaching its highest level since July 2022. Prices of soy, sunflower, rapeseed and palm oils all increased during the month, with palm oil prices additionally supported by biofuel policy incentives.
Despite war-related disruptions and higher transport and energy costs, Torero said global agri-food systems continued to show resilience. He noted that cereal prices rose only moderately due to adequate supply availability from previous harvest seasons.The FAO cereal price index rose 0.8 per cent from March and was 0.4 per cent higher compared to a year earlier. Prices of commodities such as wheat and maize increased modestly amid weather concerns, rising fertiliser costs and stronger biofuel demand.The UN agency also flagged concerns over reduced wheat sowing for 2026, as farmers in several regions are shifting towards less fertiliser-intensive crops due to the sharp rise in input costs.
Meanwhile, meat prices rose 1.2 per cent month-on-month to hit a record high, mainly due to limited slaughter-ready cattle supplies in Brazil, the FAO said.On the other hand, sugar prices declined 4.7 per cent during April amid expectations of ample supplies from Brazil, China and Thailand.In a separate report, the FAO slightly raised its forecast for global cereal production in 2025 to a record 3.040 billion metric tonnes, nearly 6 per cent higher than the previous year’s levels.

(Business Correspondent)