World food prices driven higher last month by rising energy costs due to Iran war

World food prices climbed in March, due largely to higher energy costs linked to the escalating conflict in the Middle East, the United Nations Food and Agriculture Organization says.

The FAO Food Price Index, which measures changes in a basket of globally traded food commodities, averaged 128.5 points in March, up 2.4 percent from its revised February level.

“Price rises since the conflict began have been modest, driven mainly by higher oil prices and cushioned by ample global cereal supplies,” FAO Chief Economist Maximo Torero says in a statement.

But if the conflict lasts more than 40 days and input costs remain high, farmers may reduce inputs, plant less, or switch crops, leading to lower future yields and affecting food supply and prices for the rest of this year and next, he says.