Global food commodity prices rose for a second consecutive month in March, driven largely by higher energy costs linked to escalating conflict in the Near East, the Food and Agriculture Organisation of the United Nations said in its report released on Friday.
The FAO Food Price Index, a benchmark that tracks monthly changes in international prices of a basket of globally traded food commodities, averaged 128.5 points in March, representing a 2.4 per cent increase from February and standing 1.0 per cent higher than its level a year earlier.
“Price indices across all commodity groups, such as cereals, meat, dairy, vegetable oils, and sugar, rose to varying degrees, reflecting not only underlying market fundamentals but also responses to higher energy prices linked to the conflict escalation in the Near East. Compared to historical levels, the FFPI stood 1.2 points (1.0 per cent) above its value a year ago but remained as much as 31.7 points (19.8 per cent) below the peak reached in March 2022,” the report stated.
The FAO Vegetable Oil Price Index recorded one of the sharpest increases, rising 5.1 per cent month-on-month and standing 13.2 per cent above its level a year earlier. International quotations for palm, soybean, sunflower, and rapeseed oils all climbed, reflecting spillover effects from rising crude oil prices that made biofuel production more attractive.
