According to the UN’s Food and Agricultural Organization, food prices increased globally in March for the first time since July. This increase was mostly driven by rising cooking oil prices, even while the price of cereals continued to decline.
In March 2024, the FAO’s total Food Price Index increased by 1.1 percent over the course of the month to 118.3 points. When compared annually, it was 7.7 percent less.
Over the course of the month, the vegetable oils sub-index increased by 8.0 percent, hitting a one-year high. According to the FAO, the cost of sunflower, rapeseed, palm, and soy oils has increased.
Rising palm oil prices were driven by seasonal drops in output in leading producing nations that coincided with strong demand in Southeast Asia, while demand from the biofuel sector pulled up soy oil prices.
On a monthly basis, dairy costs increased by 2.9 percent in March, while meat prices increased by 1.7 percent.
In the meantime, monthly costs for grains decreased by 2.6 percent, while prices for sugar decreased by 5.4 percent.
Following Russia’s invasion of Ukraine, a leading agricultural nation, in February 2022, food prices hit a record high but have subsequently fallen.
The increase from last month occurs at a time when inflation has sharply decreased in many nations. However, a recent spike in oil prices around the world has raised concerns that this degree of price stability may deter central banks from reducing interest rates.
