Food prices on the rise: butter hits record high

International food prices continued to climb in April. The FAO Food Price Index reached 128.3 points, up 1 percent from March. Compared to the same month last year, that’s an increase of 7.6 percent.

The dairy index rose by 2.4 percent and now stands 22.9 percent above last year’s level. Butter was the main driver behind that increase. Its price reached a new record, due to declining inventories in Europe.

Grain and meat prices continue upward trend

Cereal prices also went up: the FAO Cereal Price Index rose by 1.2 percent. Wheat became slightly more expensive due to reduced export availability from Russia. The rice index increased on the back of stronger demand for fragrant varieties. Maize prices rose as well, following seasonally lower stock levels in the United States. Exchange rate movements and changes in trade policy added to the uncertainty in global markets.

Meat prices rose by 3.2 percent compared to March. All categories saw price increases, with pork showing the largest jump. Beef prices climbed especially in Australia and Brazil, driven by steady global demand and limited export supplies.

Sugar and palm oil prices decline

Sugar prices dropped by 3.5 percent. According to the FAO, this was mainly due to concerns about the global economic outlook and its potential impact on demand from the beverage and food processing sectors. The vegetable oil index also fell, by 2.3 percent. Palm oil became cheaper as production increased in Southeast Asia, while prices for soybean and rapeseed oil went up.

Fao.org