In March, global food prices went up for the first time since July, driven by higher cooking oil prices, even as grain prices continued to decrease, according to the UN’s Food and Agriculture Organization.
The FAO’s Food Price Index rose by 1.1 percent in March 2024, reaching 118.3 points. However, compared to the previous year, it was 7.7 percent lower. The sub-index for vegetable oils surged by 8.0 percent during the month, hitting a one-year peak. Prices for palm, soy, sunflower, and rapeseed oils all experienced increases.
Palm oil prices went up due to reduced output in top-producing countries during the season, along with high demand in Southeast Asia. Meanwhile, demand from the biofuel sector boosted soy oil prices. Dairy prices increased by 2.9 percent in March, while meat prices rose by 1.7 percent.
Cereal prices dropped by 2.6 percent month-on-month, while sugar prices decreased by 5.4 percent. Food prices had surged to record highs after Russia’s invasion of Ukraine in February 2022 but have declined since then.
The recent increase in food prices contrasts with a significant slowdown in inflation in many countries. However, the recent rise in global oil prices has raised concerns that inflation could remain at a level that might discourage central banks from reducing interest rates.
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