Overview
- The FAO Food Price Index rose 2.4% in March to 128.5 points, the highest since September 2025 and the second straight monthly increase.
- FAO links the rise to higher fuel and fertilizer costs tied to the Iran conflict and to slowdowns through the Strait of Hormuz, which carries about one third of global fertilizer shipments.
- Wheat prices climbed 4.3% on weaker U.S. crop prospects and expected cutbacks by Australian farmers, vegetable oils rose 5.1%, sugar jumped 7.2%, and rice fell 3%.
- FAO projects a record 2025 cereal harvest of 3.036 billion tonnes that helps cushion near-term supply, yet it cautions a longer conflict could cut input use and lower yields within 6 to 12 months.
- The World Food Programme warns pricier fuel could push more people toward severe food insecurity, with low-income households most at risk because they spend a larger share of their income on food.