Global food prices are rising for the second month in a row
In March, global food prices rose by 2.4% compared to the revised February figure. This marks the second consecutive month of rising prices for staple food commodities.
This is according to the April report by the FAO (Food and Agriculture Organization of the United Nations).
“To varying degrees, price indices for all commodity groups—cereals, meat, dairy products, vegetable oils, and sugar—have risen, driven by both market conditions and a reaction to rising energy prices amid the escalating conflict in the Middle East,” the report states.
Compared to March 2025, prices rose by 1%, although this is 19.8% below the peak level of March 2022.
Grains and Meat
The grain price index rose by 1.5% in March compared to February and by 0.6% year-over-year. The increase is driven by rising prices for all major grains except rice. Global wheat prices rose by 4.3% due to deteriorating crop conditions in the U.S. and an expected reduction in planted acreage in Australia. The increase was partially offset by favorable conditions in Europe and competition among exporters.
The meat price index rose by 1% compared to February and by 8% year-on-year, largely due to higher pork prices in the EU amid seasonal demand. Beef prices rose moderately, while lamb and poultry prices fell slightly.The dairy price index rose by 1.2% compared to February but was 18.7% lower year-on-year. This marks the first increase since July 2025, driven by higher prices for skim milk powder, butter, and whole milk powder, while cheese prices fell.
The vegetable oil price index rose by 5.1% in March compared to February and by 13.2% compared to March 2025. The increase was driven by higher prices for palm, soybean, sunflower, and rapeseed oils. Global palm oil prices reached their highest level since mid-2022.
Sugar
The sugar price index rose by 7.2% compared to February, reaching its highest level since November 2025, although it was 21% lower than in March 2025. The increase was driven by rising crude oil prices and expectations of increased ethanol use in Brazil.
The FAO Food Price Index reflects the weighted average dynamics of international prices for five major food commodity groups: cereals, meat, dairy products, vegetable oils, and sugar.
As a reminder, oil prices on global markets recorded their sharpest weekly decline in the past six months.
