![\"A](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/05\/339.jpg\")
Photograph: UN FAO<\/p>\nGlobal food prices jump for third month running as Iran war drives up costs<\/p>\n
Newsflash: Global food prices have risen for the third month running, as the Iran war drives up the price of energy and fertiliser.<\/p>\n
The United Nations\u2019 FAO Food Price Index (FFPI) shows that prices of a basket of food commodities rose by 1.6% in April, adding to price rises in February and March.<\/p>\n
Prices for vegetable oils, meat and cereals all rose, although sugar and dairy product prices dipped.<\/p>\n
Cereal prices rose by 0.8% in April, partly due to drought in parts of the United States of America and expectations of below-average rainfall in Australia.<\/p>\n
The UN\u2019s Food and Agriculture Organization (FAO) says:<\/p>\n
double quotation markThe price increase was further supported by expectations of reduced wheat plantings in 2026, as farmers shift to less fertilizer\u2011intensive crops amid high fertilizer prices, driven by elevated energy costs and disruptions linked to the effective closure of the Strait of Hormuz.<\/p>\n
Vegetable oil prices rose by 5.9% in April, driven by pricier palm, soy, sunflower and rapeseed oils.<\/p>\n
The FAO explains:<\/p>\n
double quotation markInternational palm oil prices rose for the fifth consecutive month in April, largely underpinned by prospective higher demand from the biofuel sector, supported by policy incentives in several producing countries and higher crude oil prices. Additional upward pressure stemmed from concerns over lower production in Southeast Asia in the coming months.<\/p>\n
Meat prices rose by 1.2% in April, with bovine meat prices hitting a new peak.<\/p>\n
These increases may bolster fears that food prices will rise in the shops for months, and that there may be new shortages in Africa.<\/p>\n
Photograph: UN FAO<\/p>\n
However, dairy prices fell by 1.1% in April thanks to lower international quotations for butter and cheese, with abundant milk supplies in the European Union.<\/p>\n
And sugar prices plunged by 4.7% in the month.<\/p>\n
The FAO says:<\/p>\n
double quotation markThe drop in April was mainly driven by expectations of ample global supplies in the current season, reinforced by improved production prospects in key Asian producing countries, notably China and Thailand. The onset of the new harvest in Brazil\u2019s key southern growing regions under favourable weather conditions further contributed to the overall decline in international sugar prices.<\/p>\n
Share<\/a><\/p>\n Updated at\u00a004.17 EDT<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Kir Starmer\u2019s vow to stay on as PM has reassured markets somewhat, pushing up the pound and pushing down bond yields, reports Reuters, adding:<\/p>\n double quotation mark\u201cI think it\u2019s an initial relief rally,\u201d said Lloyd Harris, head of fixed income at Premier Miton Investors. \u201cBut ultimately I think the fireworks are still to come.\u201d<\/p>\n \u201cI would say it\u2019s a small net positive for Gilts that actually the Greens haven\u2019t done better,\u201d Harris said, adding that it reduced the chances that the left-wing party, which would likely increase spending, could win a general election.<\/p>\n However\u2026 many results are still to be declared.<\/p>\n Share<\/a><\/p>\n Bond vigilantes are \u201clurking\u201d despite the small recovery in UK gilt prices this morning<\/a>, suggests Neil Wilson, investor strategist at Saxo UK:<\/p>\n double quotation markElection results look very bad for Labour, very good for Reform. We\u2019ll see just how much pressure it brings to bear on the prime minister.<\/p>\n Gilt markets are steady at the moment but the bulk of counting hasn\u2019t even begun. The 10yr gilt yield is holding below 4.9% and the 30yr is also off a few ticks below 5.6%. There\u2019s a chance the political scene goes a bit woo-woo and bond markets are very attuned to this. Yields are not doing much this morning but remember we hit 28-year highs on the 30yr earlier this week and the bond vigilantes are lurking<\/a>.<\/p>\n Political risks associated with a Starmer\/Reeves defenestration are bound up with already rising fiscal and inflationary risks for the UK economy.<\/p>\n Sterling was also pretty steady with GBPUSD holding the 1.360 level as it tracks back within the $1.34-36 range of the last month after a couple of stalled attempts to break out in the last two sessions on the improving macro backdrop which has since taken a bit of a turn south.<\/p>\n Share<\/a>UK bond yields fall as Starmer pledges to stay on as PM<\/p>\n UK bond prices have now rallied, after Keir Starmer pledged not to resign and analysts suggested Labour was not doing as badly as feared in the council elections.<\/p>\n The yield (or interest rate) on benchmark 10-year bonds has dropped by 2.6 basis points (0.026 of a percentage point) to 4.894% this morning.<\/p>\n Thirty-year bond yields (which hit their highest since 1998 earlier this week) have dropped too, down almost 5bps to 5.562%.<\/p>\n Yields fall when the price of a bond rises.<\/p>\n These moves come as Starmer insisted he will stay on as PM, despite Labour losing hundreds of council seats already today.<\/p>\n He told Sky News:<\/p>\n double quotation markNo, I\u2019m not going to walk away and plunge the country into chaos. We were elected to deal with these challenges and that\u2019s what we will do.<\/p>\n Analysts have suggested that if Starmer were replaced by a more left-wing alternative, it could lead to higher borrowing and less commitment to the government\u2019s fiscal rules.<\/p>\n Michael Thrasher, Sky News elections analyst, has said <\/a>that the latest results suggest Labour are in danger of losing more than 1,500 seats, below what he called \u201cthe doomsday figure of 2,000 losses\u201d.<\/p>\n The pound, which is vulnerable to political uncertainty, has now gained over half a cent against the US dollar to $1.361.<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.48 EDT<\/p>\n Global food prices jump for third month running as Iran war drives up costs<\/p>\n Newsflash: Global food prices have risen for the third month running, as the Iran war drives up the price of energy and fertiliser.<\/p>\n The United Nations\u2019 FAO Food Price Index (FFPI) shows that prices of a basket of food commodities rose by 1.6% in April, adding to price rises in February and March.<\/p>\n Prices for vegetable oils, meat and cereals all rose, although sugar and dairy product prices dipped.<\/p>\n Cereal prices rose by 0.8% in April, partly due to drought in parts of the United States of America and expectations of below-average rainfall in Australia.<\/p>\n The UN\u2019s Food and Agriculture Organization (FAO) says:<\/p>\n double quotation markThe price increase was further supported by expectations of reduced wheat plantings in 2026, as farmers shift to less fertilizer\u2011intensive crops amid high fertilizer prices, driven by elevated energy costs and disruptions linked to the effective closure of the Strait of Hormuz.<\/p>\n Vegetable oil prices rose by 5.9% in April, driven by pricier palm, soy, sunflower and rapeseed oils.<\/p>\n The FAO explains:<\/p>\n double quotation markInternational palm oil prices rose for the fifth consecutive month in April, largely underpinned by prospective higher demand from the biofuel sector, supported by policy incentives in several producing countries and higher crude oil prices. Additional upward pressure stemmed from concerns over lower production in Southeast Asia in the coming months.<\/p>\n Meat prices rose by 1.2% in April, with bovine meat prices hitting a new peak.<\/p>\n These increases may bolster fears that food prices will rise in the shops for months, and that there may be new shortages in Africa.<\/p>\n However, dairy prices fell by 1.1% in April thanks to lower international quotations for butter and cheese, with abundant milk supplies in the European Union.<\/p>\n And sugar prices plunged by 4.7% in the month.<\/p>\n The FAO says:<\/p>\n double quotation markThe drop in April was mainly driven by expectations of ample global supplies in the current season, reinforced by improved production prospects in key Asian producing countries, notably China and Thailand. The onset of the new harvest in Brazil\u2019s key southern growing regions under favourable weather conditions further contributed to the overall decline in international sugar prices.<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.17 EDT<\/p>\n Pound calm despite expectations of bruising defeat for Labour<\/p>\n Sterling has largely shrugged off sweeping Reform UK gains and a bruising set of local election results for Labour, says Antonio Ruggiero, senior FX & macro strategist at Convera.<\/p>\n With the pound up just 0.05% against the euro this morning, and higher against the US dollar, Ruggiero says:<\/p>\n double quotation mark\u201cSterling has traded relatively calmly into today\u2019s open, despite UK local elections expected to deliver a bruising defeat for the Labour government. Polling stations have closed, with Nigel Farage\u2019s Reform UK racking up sweeping gains in the first counts. That said, a full picture of the results might not come into focus until later today. We are watching GBP\/EUR in particular, as the pair has typically been the clearest expression of sterling\u2019s political risk premium.<\/p>\n \u201cWith the pound widely expected to sell off on the outcome, it is instructive to assess the factors that may temper politically driven bearishness, or at least postpone it. To start, the conflict in the Middle East may have bolstered Starmer\u2019s standing marginally, or at least dampened near\u2011term calls for his removal given the uncertain geopolitical backdrop. In turn, sterling appears to have lost some of its sensitivity to political drama. The Peter Mandelson scandal is a great case in point, sterling showed to be hypersensitive to it earlier in February to grow indifferent as the issue resurfaced on multiple occasions following the outbreak of the conflict.<\/p>\n Share<\/a>Pound and UK bonds calm as Starmer refuses to resign<\/p>\n The pound, and UK government bonds, are holding up well despite the governing Labour party having a bad local election.<\/p>\n Sterling has risen by a third of a cent against the US dollar to $1.3585, holding those gains after prime minister Keir Starmer told the media \u201cI\u2019m not going to walk away,\u201d after Labour lost hundreds of council seats, with counting continuing in many places.<\/p>\n UK bond prices have dropped slightly, pushing up the yield (or interest rate) on gilts slightly. That, though, may reflect concerns that the higher oil prices will push up inflation and hurt growth.<\/p>\n Update: The UK\u2019s 30-year bond is trading flat at a yield of 5.61%, below the 28-year high (5.778%) hit earlier this week.<\/p>\n Analysts had suggested that the local elections could cause ructions in the markets, if traders concluded that a change of prime minister, and higher government spending, was likely.<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.03 EDT<\/p>\n FTSE 100 drops at the open<\/p>\n London\u2019s stock market is sliding at the start of trading.<\/p>\n The FTSE 100 index has dropped by 67 points, or 0.65%, to 10,209 points.<\/p>\n IAG are among the top fallers, down 5%, after the airline group warned this morning that profits this year will be lower than expected due to the jump on fuel prices.<\/p>\n Intertek Group have dropped by 6.5% after rejecting a takeover approach.<\/p>\n Share<\/a>BA’s parent company: supplies of jet fuel could be restricted if Middle East conflict continues<\/p>\n British Airways\u2019 parent company has warned its earnings will be lower than expected as the Iran war drives up the cost of jet fuel.<\/p>\n International Airlines Group (IAG) told the City this morning that it expects a \u201cmore substantial impact\u201d from the Middle East crisis throughout the rest of the year as the increase in the fuel cost starts to manifest itself.<\/p>\n As a result, IAG expects its profit to be lower than originally anticipated at the beginning of the year.<\/p>\n IAG also cautions that if the current conflict continues to restrict flows of both crude oil and jet fuel from the Middle East, \u201cthere is the potential for supplies of jet fuel to be restricted on a global basis\u201d.<\/p>\n IAG chief executive Luis Gallego says:<\/p>\n double quotation mark\u201cWe are actively managing the uncertainty created by the fuel price increase and its impact, taking the necessary action on yields, costs and capacity. We currently see no issues with fuel availability in our main markets, particularly as we benefit from our investment in fuel self-supply at our hubs.<\/p>\n Whilst the impact of the higher fuel price will inevitably lead to lower profit this year than we originally anticipated, we are confident in our business model and strategy, which has made us one of the best-performing airline groups in the world, and which gives us the opportunity to prove our resilience. This confidence means we are on track to continue with the remaining \u20ac1 billion return of excess cash.<\/p>\n Share<\/a>House prices: rising in the north, weak in the south<\/p>\n Across the UK, house prices are rising faster in the north of the country, and falling parts of the South.<\/p>\n Halifax reports:<\/p>\n Northern Ireland still leads UK annual house price growth, with average prices up +7.6% over the past year to \u00a3224,851.<\/p>\n Scotland also recorded strong growth, rising +4.0% annually to an average price of \u00a3222,448.<\/p>\n Wales has seen property price growth continue to slow, now +0.7% on annual basis, taking the typical home value to \u00a3230,952.<\/p>\n The North East of England saw prices rise +4.5% over the year to \u00a3183,445, while the North West recorded annual growth of +3.4%, with the average home now costing \u00a3248,945.<\/p>\n By contrast, the southern markets continue to see prices fall. The South East led declines, with prices down -2.0% year\u2011on\u2011year to \u00a3383,044, while London saw average values fall by – 1.4% to \u00a3536,051.<\/p>\n Share<\/a><\/p>\n Updated at\u00a002.25 EDT<\/p>\n Charts: UK house prices Photograph: Halifax British house prices fell by 0.1% in April as the Iran war hit confidence and drove up borrowing costs.<\/p>\n New data from mortgage lender Halifax that the average house price edged down by 0.1% in April, following a -0.5% fall in March. The average property price has dipped to \u00a3299,313, compared with \u00a3299,609 a month earlier.<\/p>\n On an annual basis, annual house price inflation slowed to just 0.4%, from 0.8% in the year to March, Halifax\u2019s monthly house price index has found.<\/p>\n Amanda Bryden, head of mortgages at Halifax, say:<\/p>\n double quotation mark\u201cAfter a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook. In particular, higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates \u2013 a shift that has already pushed up borrowing costs for many buyers.<\/p>\n \u201cThis understandably leads to more caution among some households, with the cost-of-living once again front of mind and extra thought being given to planned property moves.<\/p>\n \u201cEven so, the housing market continues to display the resilience that has been its hallmark in recent years. While activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation.<\/p>\n \u201cAnother important factor is that the majority of existing homeowners are on fixed-rate mortgages, meaning they are largely insulated from short term changes in interest rates.<\/p>\n Photograph: UN FAO<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/05\/550.jpg\")
Photograph: HalifaxShare<\/a>UK house prices fell in April<\/p>\n