FAO: Food Prices Inch Up Amid Heat Waves and Regional Conflicts

Global food prices rose in July due to higher prices for cereals, sugar, and vegetable oils. According to the Food and Agriculture Organization of the United Nations (FAO), the FAO Food Price Index averaged 131.1 points in July, up 0.6 percent from June and 1.0 percent higher than a year earlier.

The cereal price index rose by 3.4 percent month-on-month, driven by concerns over disruptions to Black Sea exports and heat waves affecting major producing regions. Wheat prices climbed 5.8 percent due to these factors, while maize prices increased 3.6 percent due to hot and dry weather in parts of the US Corn Belt and stronger energy markets.

The vegetable oil price index gained 2.0 percent to its highest level since June 2022, supported by stronger palm oil prices on robust biodiesel demand in Indonesia and higher crude oil prices, as well as firmer soybean oil prices.