World food prices soar to 10-month high as drought damages crops

World food prices rose to a 10-month high in March as crop damage from dry weather across the globe lifted the cost of everything from beef to wheat.

An index of 55 food items climbed 2.3% to 212.8 points from a restated 208 in February, according to the Rome-based UN Food and Agriculture Organisation. The gauge, at its highest since May, is still down 1% from a year earlier.

US Gulf wheat export prices tracked by the International Grains Council jumped 12% last month, the biggest surge since July 2012, as crop conditions in Texas and Kansas deteriorated due to drought. Beef prices rose as dry weather affected production in Australia and the US, while sugar gained on drought in Brazil, the biggest producer.