FAO Food Price Index Hits 3-Year High Amid War, Weather Disruptions

Global food prices have hit their highest level in more than three years as weather and war-related disruptions take their toll on crops. The FAO Food Price Index, which tracks changes in internationally traded food commodities, rose to 131.1 points in July, up from 130.3 in June.

The index has not seen a reading this high since January 2023. A 3.4% month-on-month increase in the cereal price index was the main driver of the trend, fueled by a 5.8% jump in wheat prices.

Wheat markets were affected by concerns over Black Sea export disruptions and heat damage to crops in key producing regions.