(April 3): Global food prices rose in March, driven by higher energy prices and an increase in freight costs linked to war in the Middle East.
An index of food commodity prices created by the United Nations’ Food and Agriculture Organization averaged 128.5 points in March, up three points from February, as disruptions from the Iran war ripple through food security chains.
The 2.4% increase in the gauge — which tracks grains, sugar, meat, dairy and vegetable oil costs — marks the second consecutive month of gains, having risen for the first time in five months in February.
While the index monitors raw commodity costs rather than retail prices, the increase signals food inflation may persist as conflict in the Middle East lifts energy and fertiliser costs, as well as disrupts flows of grains and key inputs through the Strait of Hormuz.
The largest gains were seen in vegetable oil and sugar prices, though figures for meat, dairy and cereals also climbed.
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