FAO Food Price Index Climbs Third Month Amid Conflict-Driven Disruptions
The FAO Food Price Index rose for a third consecutive month in April due to elevated energy costs and disruptions caused by the conflict in the Near East. The index averaged 130.7 points, up 1.6 percent from March's revised level and 2.0 percent higher than a year ago.
The FAO Cereal Price Index increased by 0.8 percent from March, driven by higher prices across major cereals except sorghum and barley. World wheat prices rose due to concerns over drought in parts of the US and below-average rainfall in Australia. Farmers' shift to less fertilizer-intensive crops amid high fertilizer costs also contributed to the increase.
The FAO Vegetable Oil Price Index surged 5.9 percent from March, reaching its highest level since July 2022. Higher palm oil prices underpinned by stronger demand from the biofuel sector and higher crude oil prices drove the rise.