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Pressure on global food prices becomes more pronounced as Iran war continues

Published: 06 Apr. 2026, 07:00 Updated: 06 Apr. 2026, 18:20

A person shops at a grocery store in Schaumburg, Illinois, on April 2. [AP/YONHAP]

With the Iran war having officially lasted for over a month, the upward pressure on global food prices is becoming more pronounced.

The United Nations’ Food and Agriculture Organization’s (FAO) Food Price Index stood at 128.5 in March, up 2.4 percent from February, according to a report by the Ministry of Agriculture, Food and Rural Affairs.

Prices rose across major categories, including grains, vegetable oils, meat, dairy and sugar. Sugar and vegetable oils in particular posted sharp increases, rising 7.2 percent and 5.1 percent compared to the previous month, respectively, due to higher international oil prices and growing uncertainty in maritime logistics.

In the United States, food prices are climbing alongside transport costs. Retail prices for tomatoes and blueberries in the United States recently rose 12 percent and 20 percent, respectively, in 2025, according to the market research company NIQ.

In Britain, food prices have also been rising, especially for meat and coffee. The Food and Drink Federation raised its year-end food inflation forecast from 3.2 percent to at least 9 percent on the assumption that the Strait of Hormuz will reopen within the next two to three weeks, suggesting prices could rise further if the reopening is delayed.

Rising fertilizer and feed prices could also further push agricultural and livestock prices. The UN projects that if the Iran war drags on, global fertilizer prices could rise by an average of 15 to 20 percent in the first half of this year. The Ministry of Agriculture, Food and Rural Affairs also expects feed prices to rise after August.

Snacks are displayed at the Yangjae branch of Hanaro Mart in Seocho District, southern Seoul, on March 19. [NEWS1]

Some cushioning effects are emerging in Korea. For example, the pace of price increases for processed food slowed somewhat as food companies lowered factory prices one after another, according to March consumer price trends released by the Ministry of Data and Statistics.

However, experts warn that it is too early to be optimistic, as there is usually a time lag before wars noticeably affect consumer prices, and within the food industry, people increasingly believe that cost increases have already accumulated and see packaging supplies as a major variable.

As a result, if the war drags on, price hikes will become inevitable after May.

“We only have about a month’s worth of packaging materials left, so we are reviewing emergency management measures such as reducing the number of products we make and cutting production volumes,” a food industry source said. “If a supply crisis becomes reality, price increases will be unavoidable.”

“Because the government is sensitive to inflation, which increases the burden on the public, price hikes may begin in earnest after the local elections on June 3,” said another industry insider who asked not to be named.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LIM SUN-YOUNG [[email protected]]