World food prices climb for third month

Global food prices rose for a third consecutive month in March as higher costs for cooking oils more than made up for a drop in dairy, weighing on household budgets.

An index of 55 food items tracked by the United Nations’ Food & Agriculture Organization advanced to 215.9 points from a revised 215.4 points in February, the Rome-based agency wrote in a report on its website today.

The cost of food may remain near current levels in coming months as rising demand makes up for increased grain availability, according to Abdolreza Abbassian, a senior economist at the FAO.

“We do expect prices to remain firm until the second half,” Abbassian said by phone from Rome today. “2012 is going to bring more supply to the market. Overall, we see 2012 prices below 2011 on average for the whole year.”

U.S. consumers will pay 2.5 percent to 3.5 percent more for food in 2012, with the biggest gains for beef and fish, after food costs climbed 3.7 percent last year, the country’s Department of Agriculture forecasts.

French wheat export prices advanced 0.4 percent in March, according to data from the International Grains Council. Prices for U.S. soybeans at ports near New Orleans jumped 5.7 percent in March, rising for a fourth month on concern hot weather in Argentina and southern Brazil will cut output there.