FAO Food Price Index Hits Highest Level Since November 2022 Amid Global Supply Risks
World food prices have reached their highest level since late 2022 due to supply risks and disruptions in global markets. According to the United Nations' Food and Agriculture Organization (FAO), the FAO Food Price Index rose to 133.3 points in August, up from July's revised reading of 130.8.
This marks the highest score since November 2022, although it is still nearly 17% below the record peak reached in March 2022 following Russia's invasion of Ukraine. The FAO's Chief Economist Maximo Torero warned that '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.'
The extreme heat and drought in Europe, combined with the threat of an El Nino weather pattern, have led to concerns over grain production. The FAO's price benchmarks for cereals, vegetable oils, sugar, meat, and dairy all rose in August.
The agency also cut its 2026 global cereal production forecast by 3.4 million metric tons from a previous estimate in July, citing lower production in Brazil's center-south region and weather concerns in Europe and Asia.