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Vegetable Oil Rally Powers On, Adding to Food Inflation Pressure

  • Soy and palm oil prices climbed on worries about tight supply
  • The products are used in vast array of consumer goods
Updated on

Vegetable oil prices are booming around the world, raising costs of the raw materials used for everything from frying food to powering engines.

From soy to palm oil -- a product used in about half of all supermarket goods -- prices have surged to records or near multiyear highs this week. Cooking oils go into biodiesel and are churned into goods from soaps to salad dressings and sweets, so the rallies are more bad news for consumers and sectors also being hit by higher transport, energy and labor costs.