Key facts
- World food prices reached their highest level since late 2022 in August.
- The FAO Food Price Index increased to 133.3 points in August, up from 130.8 in July.
- Grain prices climbed to three-year highs, and sugar prices reached a one-year peak.
- Factors contributing to the rise include extreme weather, El Nino threats, and disruptions from the Ukraine and Iran conflicts.
- Global cereal production forecast for 2026 was reduced by 3.4 million metric tons.
World food prices surged in August to their highest point since late 2022, according to data released by the United Nations' Food and Agriculture Organization (FAO). The FAO Food Price Index, which tracks global food commodity prices, averaged 133.3 points in August, a 1.9 percent increase from July's revised figure of 130.8 points. This marks the highest level since November 2022, though it remains significantly below the record peak seen in March 2022.
The rise in prices is attributed to a combination of factors, including extreme weather events such as heat and drought in Europe, the anticipated arrival of a severe El Nino pattern, and trade disruptions stemming from conflicts in Ukraine and Iran. These issues have unsettled agricultural markets, pushing grain prices to three-year highs and sugar prices to a one-year peak.
The FAO's Cereal Price Index saw a 2.2 percent increase in August, reaching its highest level since May 2024. This was driven by strong demand, concerns over crop prospects due to weather, and ongoing uncertainty surrounding Black Sea export flows. Wheat prices rose by 2.6 percent and maize prices by 2.5 percent month-on-month.
The Vegetable Oil Price Index also climbed 0.6 percent to its highest level since June 2022, influenced by higher palm and soy oil prices. The Meat Price Index rose by 1.0 percent, with increases in poultry, pig, and ovine meat prices.
In a separate development, the FAO revised down its 2026 global cereal production forecast by 3.4 million metric tons to 2.980 billion tons, which is 2.0 percent below the 2025 output but still represents the second-largest harvest on record. FAO Chief Economist Maximo Torero warned that the increase in global food prices signals a return of risk premiums to food markets due to converging climate shocks, geopolitical tensions, and disrupted trade logistics.