Global food prices in April reached their highest level in over three years, according to the United Nations' Food and Agriculture Organisation. The FAO food price index averaged 130.7 points, a 1.6 percent increase from the revised March figure and the highest since February 2023. This marks the third consecutive monthly rise, with prices up 2.0 percent compared to the same month last year.
The increase was largely driven by higher crude oil prices, which boosted demand for seed oils used in biofuels. The FAO's vegetable oil price index jumped 5.9 percent month-on-month, reaching its highest point since July 2022. Soya, sunflower, rapeseed and palm oil prices all rose, with palm oil particularly affected by policy incentives for biofuels.
Máximo Torero, FAO's chief economist, stated that elevated energy costs are increasing demand for biofuels made from oil-rich plants. Despite disruptions linked to the Iran war, global agrifood systems have remained resilient. The cereal price index rose 0.8 percent from March and was 0.4 percent higher year-on-year.
Wheat prices increased by 0.8 percent due to drought concerns in parts of the United States and forecasts of below-average rainfall in Australia. Reduced wheat plantings in 2026 are expected as farmers shift to crops requiring less fertiliser amid high fertiliser prices, driven by energy costs and disruptions from the effective closure of the Strait of Hormuz.
Maize prices rose 0.7 percent due to tighter supplies in Brazil, dry conditions affecting sowing in parts of the United States, firm ethanol demand, and ongoing fertiliser affordability concerns. Sorghum prices fell 4.0 percent due to weaker global import demand and improved supply prospects in major producing and exporting countries.
The rice price index increased 1.9 percent, driven by higher Indica and fragrant rice prices. Rising production and marketing costs in most rice-exporting countries followed the surge in crude oil and derivative prices.
The FAO reports rising food prices linked to the Iran war and energy costs, yet claims global agrifood systems remain resilient—a contradiction in framing crisis as both severe and manageable. Farmers in Nigeria already facing high fertiliser and fuel costs will see imported rice and vegetable oil become more expensive. This pressure comes without any direct mention of how African import-dependent nations might cope. The data offers no relief for households where food inflation is deepening existing hardship.
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