On this occasion, groceries had an increase of 33.6% in relation to march 2021, which marks the highest acceleration in the last 14 years. Likewise, the index rose 12.6% compared to february this year, to stand at a value of 159.3 points.

The effect of the war

The FAO cereal price index showed a value 17.1% higher in march than in february, driven by large increases in wheat and all coarse grains prices, largely as a result of the war in Ukraine, the official report details.

It should be noted that Russia and Ukraine together accounted for about 30% and 20% of world wheat and corn exports, respectively, over the past three years.

In that context, world wheat prices advanced 19.7% during the month, exacerbated by concerns over crop conditions in the United States.

Meanwhile, corn prices recorded a month-on-month increase of 19.1%, reaching an all-time high. Contrasting trends among the various origins and grades kept the march value of the FAO rice price index little changed from february and thus still 10% below the previous year's level.

Also in oils

The price of vegetable oil increased 23.2%, due to higher quotations for sunflower seed oil, of which Ukraine is the world's leading exporter.

Likewise, soybean oil prices were further supported by concerns about reduced exports from South America.

Animal proteins, more expensive

The widespread increase also impacted animal protein prices, albeit to a lesser degree. Nevertheless, according to the price index, FAO meat rose 4.8% in march to reach an all-time high, driven by higher pork prices related to the shortage of slaughter pigs in Western Europe.

As for dairy products, FAO marked a 2.6% increase and was 23.6% higher than in march 2021, as butter and milk powder quotations rose sharply, amid increased import demand for short- and long-term deliveries, especially from Asian markets.

Sugar increased by 6.7% since february, reversing recent declines, to reach a level more than 20% higher than in march 2021. Higher crude oil prices were a determining factor, along with the appreciation of the Brazilian real currency, while favorable production prospects in India prevented further monthly price increases.