Food Price Index Rises As Energy Costs Increase

(MENAFN- AzerNews) Nowadays, inflation is one of the biggest economic problems in many countries. It affects the daily lives of millions of people.

One of the main reasons for inflation is the increase in production costs and global economic changes.

The FAO Food Price Index, a key benchmark that tracks monthly changes in international prices of globally traded food commodities, averaged 128.5 points in March. This represents a 2.4 percent increase compared to February and a 1.0 percent rise year-on-year, signaling persistent pressure on global food markets. A closer look at individual components reveals mixed trends across major commodities. The FAO Cereal Price Index rose by 1.5 percent from the previous month, driven mainly by a sharp increase in global wheat prices.

Meanwhile, global maize prices saw only a slight increase. This modest growth reflects a balance between abundant global supplies and rising concerns over fertilizer affordability. Additional upward pressure came from growing demand for ethanol, which is closely tied to increasing energy prices contrast, rice prices moved in the opposite direction. The FAO All-Rice Price Index declined by 3.0 percent in March, influenced by seasonal harvest cycles, weaker import demand, and currency depreciations against the U.S. dollar.

FAO Chief Economist Maximo Torero has recently highlighted the risks associated with disruptions in the Strait of Hormuz during a United Nations press briefing. The organization has also published a report examining the broader global agrifood implications of the ongoing Middle East conflict.

The International Monetary Fund (IMF) said the ongoing war in the Middle East will drive up inflation and slow the pace of global economic growth.

Speaking to Reuters on Monday, IMF Managing Director Kristalina Georgieva said the fund had, prior to the conflict, expected a slight upgrade to global growth forecasts to 3.3% in 2026 and 3.2% in 2027.

Inflation rate in Azerbaijan averaged 47.57 percent from 1992 until 2026, reaching an all time high of 1663.54 percent in December of 1994 and a record low of -9.83 percent in April of 1999.

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