Key facts
- The FAO Food Price Index averaged 131.1 points in July, a 0.6% increase from June.
- The index is 1.0% higher than its level in July 2025, marking a three-year high.
- Cereal, sugar, and vegetable oil prices contributed to the increase.
- Meat and dairy prices declined, partially offsetting the overall rise.
- Global wheat prices surged 5.8% due to Black Sea disruptions and heatwave impacts.
- Vegetable oil prices reached their highest level since June 2022.
World food prices reached a three-year high in July, driven by increases in the price indices for cereals, sugar, and vegetable oils, according to the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index averaged 131.1 points in July, up 0.6 percent from its June level and 1.0 percent higher than its year-earlier level. This marks the highest point since March 2022, though it remains 18.2 percent below its peak.
The FAO Cereal Price Index increased by 3.4 percent from June, with global wheat prices surging 5.8 percent due to concerns over Black Sea export disruptions and heatwave impacts on crop yields. World maize prices also rose 3.6 percent, influenced by hot and dry weather in the U.S. Corn Belt and geopolitical tensions.
The FAO Vegetable Oil Price Index rose 2.0 percent, reaching its highest level since June 2022, primarily due to higher palm and soy oil prices driven by strong demand and rising crude oil prices. Conversely, sunflower and rapeseed oil prices declined.
The FAO Meat Price Index saw its first monthly decline of the year, falling 2.8 percent from its June record high. Poultry and pig meat prices decreased due to ample supplies and subdued demand, while bovine meat prices eased. Ovine meat prices, however, continued to rise.
The FAO Dairy Price Index declined by 0.7 percent, with milk powder and butter prices dropping. The FAO Sugar Price Index increased by 5.6 percent, influenced by weather concerns in key producing regions and strong demand for ethanol in Brazil.