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World Food Prices Hit Highest Since 2022 Amid Supply Risks
Food prices around the world went up in August.
The United Nations Food and Agriculture Organization said its food-price measure reached its highest level since late 2022.
Hot and dry weather in Europe may reduce some crops and livestock production.
A possible strong El Niño could also hurt palm oil and sugar production in Asia.
Wars and attacks near the Black Sea have made it harder to move grain from Russia and Ukraine.
The reported U.S.-Iran conflict has also strained fertilizer supplies.
Sugar prices rose especially sharply, while prices for grains and vegetable oils also increased.
The FAO expects less cereal production in 2026 than it previously predicted, but the total would still be the second-largest ever.
The FAO Food Price Index rose to 133.3 points in August, up from a revised 130.8 in July.
August’s reading was the highest since November 2022 but remained nearly 17% below the March 2022 record.
Extreme heat and drought in Europe, El Niño concerns, and war-related trade disruption increased supply worries.
Cereal prices rose 2.2%, vegetable oils 0.6%, and sugar 11.9% during August, according to the FAO.
The FAO cut its 2026 cereal-production forecast to 2.980 billion tons, though that would still be the second-highest output on record.
- Who
- The United Nations Food and Agriculture Organization, including Chief Economist Maximo Torero, reported the figures.
- What
- Global food prices rose in August to their highest level since November 2022, while the FAO lowered its 2026 cereal-production forecast.
- Where
- The effects were reported across international food markets, with weather concerns in Europe and Asia and trade disruptions involving the Black Sea and the U.S.-Iran conflict.
- When
- The figures concern August, with the report issued on September 4.
- Why
- Extreme weather, possible El Niño conditions, geopolitical tensions, attacks affecting grain shipments, and disrupted fertilizer and trade logistics raised concerns about supplies.
Key facts
- August FAO Food Price Index
- 133.3 points
- July revised index
- 130.8 points
- Highest level since
- November 2022
- Cereal price change
- Up 2.2% month-on-month
- Sugar price change
- Up 11.9% month-on-month
- 2026 cereal-production forecast
- 2.980 billion metric tons, 2.0% below 2025
- Forecast 2026/2027 cereal stocks
- 947.2 million metric tons, revised down 1.1%
Quotes
Maximo Torero
FAO Chief Economist
“August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations.”
theprint.in
CNBC TV 18
Sources
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