Global food prices rose for the first time in seven months in March, the United Nations Food and Agriculture Organization (FAO) reported Friday, with a dramatic increase in prices for vegetable oil setting the pace.
The FAO said its broad Food Price Index had climbed 1.1 percent in March compared to a month earlier.
It was the index’s first increase of any kind since last July. Despite the increase, the broad index was still 7.7 percent below its level from March 2023, the FAO said. Vegetable oil prices rose 8.0 percent compared to February.
The FAO said palm oil prices were pushed higher by lower output from Southeast Asia, while soy oil prices climbed due to greater demand from the biofuel sector in Brazil and the United States.
Prices for sunflower and rapeseed oils also rose. Global prices for dairy products were higher, gaining 2.9 percent due to strong demand for cheese and butter.
Meanwhile, wheat prices gained 1.7 percent, with increases across the board for poultry, pig, and bovine meats. Other parts of the index declined, led by a 2.6 percent fall in prices for grains and cereals, the largest component in the index. This sub-index is now 20 percent below its level from a year ago. The FAO said the factors pushing prices lower for grains and cereals included lowered demand for wheat from China, and strong production from the European Union, Russia, and the United States.
Rice prices are also lower amid weakening demand, although corn prices rose due to logistical issues related to the situation in Ukraine.
The sub-index for sugar declined 5.4 percent, helped by forecasts for strong production from India and Thailand. (Xinhua)
