FAO: Global Food Prices Reach Three-Year High Amid War, Weather Disruptions

Global food prices have reached their highest point since November 2022, according to the United Nations' Food and Agriculture Organization (FAO). The FAO's Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 133.3 points in August, up from July's revised reading of 130.8.

This increase is largely due to adverse weather conditions, including extreme heat and drought in Europe, as well as the threat of an El Niño weather pattern. The war disruption in the Gulf and Black Sea has also contributed to tightened supply expectations. '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,' said FAO Chief Economist Maximo Torero.

The FAO's price benchmarks for cereals, vegetable oils, sugar, meat, and dairy all rose in August. The agency cut its 2026 global cereal production forecast by 3.4 million metric tons from July, citing the impact of extreme weather and war disruption on agricultural markets.