UN food agency says global food prices rise 2.4% in March on higher energy costs

ISTANBUL

World food prices rose 2.4% in March from the previous month, driven by higher energy costs linked to escalating conflict in the Middle East, the UN’s Food and Agriculture Organization (FAO) said Friday.

The increase marked the second consecutive monthly rise, with prices climbing across all major commodity groups, including cereals, meat, dairy, vegetable oils and sugar.

The FAO Food Price Index stood 1.2 points, or 1%, higher than a year earlier.

The Cereal Price Index rose 1.5% to 110.4 on a monthly basis and was up 0.6% year on year. The Vegetable Oil Price Index averaged 183.1 points in March, up 5.1% from February and marking a third straight monthly increase, with a 13.2% annual rise.

“International palm oil prices reached their highest level since mid-2022 and moved to a premium over soy oil, largely reflecting spillover effects from the sharp increases in crude oil prices,” the FAO said.

The Meat Price Index averaged 127.7 points, up 1% from February and 8% higher than a year earlier. The Dairy Price Index rose 1.2% on the month to 120.9 points but remained 18.7% below its level in March 2025.

The Meat Price Index averaged 127.7 points, up 1% from February and 8% higher than a year earlier. The Dairy Price Index rose 1.2% on the month to 120.9 points but remained 18.7% below its level in March 2025.

The FAO said the increase was driven largely by higher crude oil prices, which raised expectations that Brazil, the world’s top sugar exporter, would allocate more sugarcane to ethanol production.

“Additional upward pressure on sugar prices stemmed from concerns over the impact of the Near East conflict escalation on sugar trade flows,” it added.