According to the latest data from the Food and Agriculture Organization (FAO) of the United Nations, global food prices continued to rise for the third consecutive month in April. The main drivers of inflation are the conflict in the Middle East and instability in the energy market.
The FAO Food Price Index averaged 130.7 points in April, up 1.6% from March and 2% higher than a year earlier. The sharpest increase was recorded for vegetable oils, which rose 5.9%, reaching their highest level since summer 2022. Prices for all types of oils, from palm to sunflower, increased. Expensive oil boosted demand for biofuels, creating a shortage of food-grade raw materials.
Cereal prices also continued to climb. The FAO Cereal Price Index rose 0.8% from March. Global wheat prices increased due to concerns over drought in the US and adverse weather conditions in Australia. At the same time, rising fertilizer costs and expectations of reduced wheat planting areas in 2026 are influencing the market.
Maize prices rose 0.7% amid seasonal declines in supply and risks to crops in Brazil and the US. An additional factor was sustained demand from ethanol producers, supported by high oil prices.
FAO Chief Economist Maximo Torero noted that global agrifood systems remain resilient so far, thanks to large grain stocks and stable supplies from previous seasons. However, future price dynamics will depend on the energy market and developments in the Middle East.
The price increase also affected the rice market. The FAO Rice Price Index rose 1.9%, driven by higher logistics, fuel, and production costs in exporting countries. Meanwhile, meat prices continued to set records. The FAO Meat Price Index rose 1.2% month-on-month and 6.4% year-on-year. Beef prices saw a particularly sharp increase due to limited livestock supply and rising export prices in Brazil.
Against this backdrop, some food categories showed declines. The FAO Sugar Price Index fell 4.7% from March and more than 21% year-on-year, thanks to expectations of high production volumes in China, Thailand, and Brazil. Dairy prices also decreased, mainly due to increased milk supply in Europe and Oceania.
Despite the current price increases, FAO raised its forecast for global cereal production in 2025. The organization expects world output to reach 3.04 billion tonnes, 6% higher than last year. However, the outlook for the wheat market remains uncertain due to high energy and fertilizer costs, as well as ongoing tensions around the Strait of Hormuz.
Earlier reports indicated that Uzbekistan has become one of the countries with the highest beef prices in Central Asia, significantly outpacing its neighbors. While the average price of boneless meat in Kazakhstan is about $8.67 per kilogram, in Uzbekistan it stands at $10.92.
Source: podrobno.uz