Global food prices ticked higher in April, according to new data from the United Nations’ Food and Agriculture Organization (FAO), as increases in cereal, meat, and dairy prices outweighed declines in sugar and vegetable oils.
The FAO Food Price Index, a key barometer of international food commodity prices, rose to 128.3 points, a 1% increase from March. The figure is 7.6% higher than April 2024, though it remains nearly 20% below the record levels seen in March 2022, after Russia invaded Ukraine.
What’s driving the price jump?
The cereal price index rose 1.2% month-on-month, reflecting tightening U.S. corn stocks, higher wheat prices due to reduced Russian exports, and stronger demand for rice. Despite the monthly uptick, cereal prices were still 0.5% belowtheir level a year ago.
Meat prices saw a 3.2% surge, particularly in pig meat and bovine imports, driven by firm global demand. Meanwhile, dairy prices jumped 2.4%, up an eye-catching 22.9% year-over-year, as butter hit record highs on dwindling European inventories.
Sugar and oil prices drop
Not all food categories followed the inflationary trend. Vegetable oil prices fell 2.3%, largely due to sharp declines in palm oil prices. Similarly, sugar prices dropped 3.5% as concerns over the global economy weighed on market sentiment.
The FAO also noted that currency fluctuations and tariff-related market uncertainty contributed to pricing volatility across commodities.
Global production outlook
In a separate cereal report, the FAO maintained its world wheat production forecast at 795 million metric tons, matching last year’s level. However, it slightly revised down its 2024 global cereal production forecast to 4.848 billion tons from 4.849 billion, suggesting only a minor tightening in supply.
While April’s price increases don’t yet approach crisis levels, the trend underscores ongoing volatility in the global food system — with trade tensions, climate challenges, and economic uncertainty continuing to shape what lands on dinner tables around the world.
