FAO Warns Global Food Prices to Rise Again by Late 2026

The Food and Agriculture Organization (FAO) is warning of another wave of global food inflation by late 2026. According to FAO Chief Economist Máximo Torero, a combination of factors including conflicts in Iran and Ukraine, El Niño, higher oil prices, and tighter supplies of agricultural inputs are driving up production costs.

The increased costs have not yet been passed on to consumers but are expected to do so over the coming months. Commodity price increases typically take three to six months to filter through the food supply chain, suggesting that consumers could begin seeing stronger food inflation by the end of this year with additional increases likely throughout 2027.

The FAO also expressed concern about the strength of this year's El Niño, which is expected to alter rainfall patterns across several major agricultural regions. India is already experiencing a delayed monsoon and below-average rainfall, raising concerns about rice production and global grain supplies.