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FAO Says Global Food Prices Rose Again in March

Higher energy costs tied to the Middle East conflict are pressuring markets.

Sacks of harvested wheat are seen at a grain market in Gaggarpur village, in the northern state of Haryana, India, April 25, 2025. REUTERS/Bhawika Chhabra

Overview

  • The FAO Food Price Index, a gauge of globally traded food costs, reached 128.5 in March, up 2.4% from February and 1.0% from a year earlier, the highest since December.
  • Rising energy prices raise transport and processing costs for food, which can push up import bills for countries that rely on global markets.
  • FAO said the latest increase reflects energy price gains linked to the conflict in the Middle East.
  • The agency warned that fertilizer supply disruptions and high energy costs are adding uncertainty to food markets.
  • In a separate update, FAO lifted its 2025 global cereal output forecast to a record 3.036 billion metric tons, equal to a 5.8% rise from last year.