FAO Food Price Index Hits Three-Year High Amid Cereal and Oil Price Increases

Global food prices have reached their highest level in over three years according to the United Nations Food and Agriculture Organisation (FAO). The FAO Food Price Index rose by 0.6% in July, settling at 131.1 points.

The increase was driven by higher prices for cereals, sugar, and vegetable oils. Cereal prices climbed 3.4%, with wheat prices rising due to concerns over disruptions to Black Sea exports and damage to export infrastructure.

Heatwaves affecting crops in several producing countries also contributed to the increase in cereal prices. Maize prices rose by 3.6% over the same period.

The vegetable oil price index gained 2%, reaching its highest level since June 2022, underpinned by stronger palm and soybean oil prices.