FAO food price index rises slightly amid mixed commodity outlook

THE Food and Agriculture Organization of the United Nations (FAO) has reported a modest increase in its food price index, highlighting ongoing fluctuations in global commodity markets as supply and demand dynamics play a pivotal role in shaping consumer costs.

- YOGASHEN PILLAY

In its latest release, the FAO Index for April 2025 averaged 128.3 points, marking a 1.0% rise from March and a significant 7.6% leap from the same month last year.

Key contributors to this uptick included commodities like wheat, maize, meat, and dairy products.

The FAO's Cereal Price Index climbed by 1.2% from March, with global wheat prices experiencing a slight boost attributed to reduced exportable supplies in the Russian Federation.

Additionally, heightened demand for aromatic rice types contributed to an increase in the FAO All Rice Price Index, signalling robust consumer interest.

Furthermore, seasonally tighter stock levels in the United States pushed international maize prices higher, exacerbated by recent adjustments to the US import tariff policies.

With exemptions for Mexico, the largest importer of US maize, and a temporary pause on tariffs above 10% for certain trading partners, market dynamics remained precarious.