FAO Food Price Index Surges on Supply Concerns

The FAO Food Price Index rose by 1.9% in August to an average of 133.3 points, up from its revised July level and 2.5% higher than a year earlier.

This increase is attributed to high temperatures and other weather-related risks that raised concerns about supply prospects, as well as geopolitical tensions and disrupted trade logistics.

Grain prices were the main driver of the rise, with international prices of all major grains increasing due to robust import demand, growing concerns over crop prospects, and uncertainty surrounding critical trade flows.

The cereal price index increased by 2.2% from July, with global wheat prices rising by 2.6% and 15.0% above their year-earlier level.