Uncertainty about tariffs pushed global food prices to a two-year high
Kyiv • UNN
Global food prices rose to their highest level since March 2023 due to uncertainty about duties. Rising prices for grains, meat and dairy products also affected the index.
Global food prices rose to a two-year high in April, a sign that uncertainty about tariffs is beginning to put pressure on trade, Bloomberg reports, writes UNN.
Details
The UN index, which tracks the cost of food commodities, rose to 128.3, up 1% from the previous month, reaching a level last seen in March 2023.
Although it takes time for the impact to reach supermarkets, and the indicator remains well below its 2022 peak, the move hints at the possibility of higher food prices after a period when food inflation has eased, the publication writes.
"Exchange rate fluctuations influenced price movements in global markets, while policy adjustments regarding tariffs increased market uncertainty," according to the Food and Agriculture Organization of the United Nations. Meanwhile, jumps in prices for grain, meat and dairy products, as indicated, also pushed the index up.
Supplement
Volatility in agricultural commodity prices, caused by moves such as US President Donald Trump's tariffs and subsequent retaliatory measures by trading partners, as the publication notes, was noted earlier this year. Despite a 90-day suspension of some tariffs, global markets have been rattled by policy changes in recent weeks.