Food Prices Reach Highest Level Since January 2023 Amid Global Supply Disruptions

The global food price index has reached its highest level since January 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 a price increase of 3.4% to 113.8 points. Wheat saw the most significant price rise, increasing by 5.8% over the month and almost 10% compared to the same period last year.

The FAO attributes this dynamic to supply disruptions through the Black Sea, damage to export infrastructure, and prolonged heat in major producing countries. Additionally, corn prices rose by 3.6% over the month, impacting overall food costs.