FAO Warns Record-High Food Prices Amid 'Perfect Storm' of Weather and Conflict

Global food prices have reached their highest level in over three years due to extreme weather and ongoing global conflict, according to the UN Food and Agriculture Organization (FAO).

The FAO's food price index averaged 131.1 points in July, surpassing June's reading of 130.3 points.

This increase is attributed to a 'perfect storm' of compounding pressures, including severe weather conditions such as intense heatwaves and El Niño impacts damaging crop yields, alongside escalating geopolitical conflicts, particularly in the Black Sea region and the Gulf.

The cereal price index rose 3.4% month-on-month, driven by a 5.8% jump in wheat prices due to concerns over Black Sea export disruptions and heat damage to crops in key producing regions.