<div id="readability-page-1"><div><p>GLOBAL food prices rose to their highest in more than three years as the Iran war disrupted supply chains, raising the prospect of higher bills for shoppers.</p><p>The United Nations’ index of food-commodity prices gained 1.6 per cent in April, led by higher vegetable oil, meat and cereal prices, according to a Friday report. That’s 2.5 per cent higher than a year ago. </p><p>Now in its third month, the Iran war has effectively shut the critical Strait of Hormuz, curbing flows of essential farm inputs such as diesel and fertiliser and boosting prices. Vegetable oils led the UN index higher, climbing 5.9 per cent from March to hit its highest since July 2022.</p><p>Vegetable oils “are experiencing stronger price increases, driven largely by higher oil prices, which are increasing demand for biofuels and putting additional pressure on vegetable oil markets,” said FAO chief economist Máximo Torero.</p><p>The index monitors raw commodity costs rather than retail prices, meaning there will still be a lag for an increase in farmgate prices to reach consumers. </p><p>Still, the increase from March’s level is the first sign that food inflation is likely to pick up, even as the US and Iran weigh a peace deal that would reopen the strait. </p><div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>The increase in the gauge — which tracks grains, sugar, meat, dairy and vegetable oil costs — marks the third consecutive month of gains, having risen for the first time in five months in February. </p><p>The meat index hit a record high, climbing 1.2 per cent from March. The cereal price index rose by 0.8 per cent from March on weather concerns and expectations of reduced wheat plantings in 2026, as farmers consider sowing less fertiliser-intensive crops due to the conflict in Iran. </p><p>Global growers are already warning of decreasing planting areas and crop yields, with the cost of diesel and fertilisers surging since the war began in February. </p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="3656" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/150ad7961b9ac047fae227207245c5440b29bcfb8b519b5fd4e55139a753a363/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5240" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/150ad7961b9ac047fae227207245c5440b29bcfb8b519b5fd4e55139a753a363/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Asia heatwaves spell double trouble for economies hit by oil</span></h3><p></p></div></div><div><div><div><p><img height="3998" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/4c2d14cbcf378dda206045b48865ff2162eacae87a4abb8731295b723bc276bc/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5996" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/4c2d14cbcf378dda206045b48865ff2162eacae87a4abb8731295b723bc276bc/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>World Bank warns of growing geopolitical commodity shocks, beyond oil crisis</span></h3><p></p></div></div></div></div></div></div><p>Some top European producers, France and Romania, have signalled lower output as farmers curb corn sowing in a bid to deal with higher input costs. BLOOMBERG </p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

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<p>Global food prices have surged to their highest level in over three years due to disruptions caused by the Iran war, which has affected supply chains and increased costs for essential farm inputs. The UN's food-commodity price index rose by 1.6% in April, with significant increases in vegetable oil, meat, and cereal prices. The conflict has led to a reduction in planting areas and crop yields, raising concerns about future food inflation as the situation continues to evolve.</p>

Food prices rise to highest in three years on Iran war costs