Decade-high food prices hit Asian consumers and businesses

SINGAPORE — The impact of the soaring prices of agricultural staples from wheat to vegetable oils to sugar over the past few months is now hitting consumers and businesses in Asia.

Food manufacturers are offloading higher prices to households, which is weighing on consumption and potentially subduing any economic recovery from the COVID-19 pandemic in some countries. Some exporters and farmers are, however, benefiting from the favorable market conditions.

The benchmark food price index published by the United Nations’ Food and Agriculture Organization (FAO) — which tracks the prices of meat, dairy, cereals, vegetables oils and sugar — rose for the 12th consecutive month in May to 127.1, hitting the highest level in nearly 10 years. May’s figure was 40% higher than a year ago.

A combination of several factors drove the price surge. Demand in China, one of the world’s biggest food…