Global food prices rose in April for the second month in a row, driven by higher costs for cereals, meat, and dairy products, according to a report released Friday by the United Nations Food and Agriculture Organization (FAO).
The FAO Food Price Index, which measures monthly changes in international prices of a basket of food commodities, climbed to 128.3 points in April, marking a 1% increase from March’s 127.1. Compared to April 2024, prices are up 7.6%, although they remain 19.9% below the peak recorded in March 2022 following Russia’s invasion of Ukraine.
Cereal Prices Lead the Climb
The cereal price index rose 1.2% month-on-month, driven by:
- Wheat prices, which edged up due to reduced export volumes from Russia;
- Rice, supported by strong global demand;
- Corn, which faced tightening stockpiles in the United States.
Despite the monthly rise, cereal prices remained 0.5% lower than a year ago. The FAO noted that currency fluctuations and tariff policy changes contributed to market uncertainty, influencing global prices.
Meat and Dairy Costs Surge
The meat price index saw the largest monthly jump, increasing 3.2%, fueled primarily by:
- Rising pig meat prices, and
- Strong international demand for bovine meat.
Dairy prices also surged, with the index rising 2.4% in April and a striking 22.9% higher than a year ago. The FAO attributed this sharp increase to record-high butter prices amid shrinking inventories in Europe.
Sugar and Vegetable Oils Decline
In contrast to the upward trend in other categories:
- The vegetable oil price index dropped 2.3%, led by a sharp fall in palm oil prices.
- The sugar price index declined 3.5%, amid growing concerns over the global economic outlook dampening demand.
