FAO Reports Slight Rise in Food Prices Amid Heat Waves and Regional Conflicts

Global food prices edged up in July due to higher prices for cereals, sugar, and vegetable oils. The FAO Food Price Index averaged 131.1 points in July, a 0.6% increase from June and 1% higher than the same period last year.

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

The vegetable oil price index gained 2% to its highest level since June 2022, supported by stronger palm oil prices on robust biodiesel demand in Indonesia and higher crude oil prices.