FAO: Global Food Prices Rise Amid Grain Price Surge and Weakening US Dollar

According to the Food and Agriculture Organization of the United Nations (FAO), global food prices rose for the first time in several months, driven by a surge in grain prices. The FAO's Food Price Index stood at 133.3 points in August 2026, up 1.9% from the revised July figure and 2.5% from the same period last year.

The grain price index rose 2.2% compared to July, with all major grains increasing amid robust import demand and concerns about harvest prospects. Global wheat prices rose 2.6% in August, a 15% increase above last year's levels, due to disruptions to export logistics through the Black Sea, worsening harvest forecasts in Europe, and a weakening US dollar.

The FAO also lowered its forecast for global cereal production in 2026 to 2980 million tonnes, down 2% from 2025. This decrease is attributed to unfavourable weather conditions, conflict in the Middle East, and logistical problems in trade in the Black Sea region.

FAO Chief Economist Maximo Torero emphasized that climate shocks, geopolitical tensions, and trade disruptions are adding to supply uncertainty, making resilience, open trade, and uninterrupted resource supplies key to global food price stability.