Global food prices have risen to their highest level in over three years amid the war with Iran, which has disrupted supply chains and increased the risk of higher food costs for consumers. This was reported by Bloomberg, according to UNN.
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The UN food price index rose by 1.6% in April compared to the previous month, primarily due to the rising cost of vegetable oils, meat, and cereals, according to a Friday report by the Food and Agriculture Organization of the United Nations (FAO). This is 2.5% higher than a year ago.
The war with Iran, now in its tenth week, has effectively blocked the strategically important Strait of Hormuz, limiting the supply of key agricultural resources, including diesel fuel and fertilizers, and causing prices to rise. This threatens to reduce production for farmers, which will ultimately affect the cost of food products.
The agri-food sector remains resilient for now, as products already produced are being sold. But the situation will change very quickly when the rise in raw material and energy prices begins to be passed down the line, and then consumers will feel it,
Rising oil prices have also increased demand for biofuels: the UN vegetable oil index rose by 5.9% compared to March, reaching its highest level since July 2022.
The index tracks commodity prices rather than retail prices, so there will be a time lag between the price increase at the producer level and its impact on consumers. At the same time, the increase compared to March was the first signal that food inflation could accelerate, even as Iran considers a US-proposed deal to end the war that began in late February.
If this continues until the 90th day, the probability of a food crisis in late 2026 and in 2027 will increase significantly,
The rise in the index, which covers prices for cereals, sugar, meat, dairy products, and vegetable oils, marked the third consecutive month of growth.
The meat price index rose by 1.2% to reach a record level, while the cereal index rose by 0.8% due to weather risks and expectations of reduced wheat plantings in 2026, as farmers consider growing crops that require less fertilizer.
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