Global food prices continued to rise for the third consecutive month, driven by higher vegetable oil, meat and cereal prices that outweighed declines in sugar and dairy products.

The FAO Food Price Index, which tracks global prices for a basket of food commodities, averaged 130.7 points in April 2026, rising 1.6% from March, according to the Friday report from the United Nations' Food and Agriculture Organization (FAO). The number was 2.0% above its level from a year earlier, but still 18.4% below the March 2022 high.

Vegetable Oils, Cereals Surge

Vegetable oils posted the sharpest jump among the major categories, with the FAO Vegetable Oil Price Index climbing 5.9% in April to 193.9 points, marking the strongest level since July 2022.

FAO attributed the rise to higher prices for palm, soy, sunflower and rapeseed oils, with biofuel demand and higher crude prices cited as key supports. The agency also pointed to worries about weaker output in Southeast Asia, while noting sunflower oil markets were also influenced by tight availability around the Black Sea.

Cereals also moved higher, with the FAO Cereal Price Index up 0.8% in April to 111.3 points. The organization said most major grains rose, while sorghum and barley were exceptions.

Wheat prices increased 0.8% due to drought in parts of the U.S. and the increased risk of below-average rainfall in Australia. The organization also cited expectations for smaller wheat plantings in 2026 as farmers shift toward crops that require less fertilizer, amid high fertilizer costs tied to energy prices and disruptions linked to the effective closure of the Strait of Hormuz.

What's Driving Meat Prices

Meat prices continued to climb, with the FAO Meat Price Index up 1.2% in April to a new record of 129.4 points. This was 6.4% higher than a year earlier.

FAO said prices rose across every meat category except ovine, which was largely steady.

Beef prices reached a new peak as Brazil's export quotations strengthened amid tight supplies of slaughter-ready cattle during herd rebuilding. Strong demand, particularly from China, also drove the prices higher.

Pork prices increased as European Union quotations firmed with seasonal demand, partly offset by lower prices in Brazil due to ample supplies, FAO said. Poultry also rose as stronger buying from several African markets outweighed softer sales to the Near East, where FAO said logistics issues forced rerouting through the Red Sea.

The upward trend in food prices aligns with recent reports indicating that food inflation in the U.S. is expected to accelerate, driven by a staggering 102% increase in tomato prices and an 88% rise in diesel costs.

Dairy, Sugar Prices Decline

The FAO Dairy Price Index was down 1.1% in April to 119.6 points. FAO said the drop came mainly from lower butter and cheese prices, even as skim milk powder extended its rise and whole milk powder held roughly flat.

Sugar posted one of the largest declines, with the FAO Sugar Price Index falling 4.7% in April to 88.5 points. FAO said the drop reflected expectations for ample global supplies, supported by improved production prospects in Asia and the start of harvest in Brazil's main southern growing areas under favorable weather.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.