Food Price Index Surges to Highest Level Since 2023

The global food price index has reached its highest level since 2023, according to the Food and Agriculture Organization of the United Nations (FAO). The index rose by 0.6% in July compared to the previous month, reaching 131.1 points.

The main driver of growth was cereal crops, with the price index in this category increasing by 3.4% to 113.8 points. Wheat saw the most significant price increase, rising by 5.8% over the month and almost 10% compared to the same period last year.

The FAO attributes these dynamics to several factors, including supply disruptions through the Black Sea, damage to export infrastructure, and prolonged heat in major producing countries. Corn prices also increased by 3.6% over the month, contributing to higher grain prices.

Prolonged increases in grain prices will gradually raise the cost of producing meat, dairy products, and other food items, affecting different countries' markets depending on raw material stocks, logistical capabilities, and domestic situations.