FAO Warns of Rising Food Prices Amid Weather Disruptions and Geopolitical Tensions
Global food prices have reached their highest level since November 2022 as supply risks mount. The United Nations' Food and Agriculture Organization (FAO) reported that the FAO 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.
Extreme heat and drought in Europe, as well as concerns over a severe El Nino weather pattern, have contributed to the rise in prices. The FAO also cited trade upheaval caused by the Ukraine and Iran wars as a factor in the increase.
The FAO's price benchmarks for cereals, vegetable oils, sugar, meat, and dairy all rose in August. Among food categories, the FAO's cereals price index rose 2.2% month-on-month to its highest since May 2024, while the vegetable oil index edged up 0.6% to its highest since June 2022.
The agency also cut its 2026 global cereal production forecast by 3.4 million metric tons from a previous estimate in July to 2.980 billion tons, now 2.0% below 2025 levels.