Food Prices Rise Amid Heatwaves and Energy Hikes
Global food prices have continued to rise in July, driven by heatwaves and energy price hikes. According to the FAO Food Price Index update, staple food prices remain above 2025 levels. The index has shown a surge in several commodity prices, including sugar, which rose by 5.6% in July due to concerns over hot and dry weather conditions affecting crop yields in Europe and Asia.
The price of cereals increased by 3.4% from June, reversing earlier declines, and settling 6.9% above their July 2025 level. Global wheat prices also rose by 5.8%, affected by disruptions to Black Sea exports caused by the Russian invasion of Ukraine, as well as heatwaves impacting crop yields in several countries.
The vegetable oil price index reached its highest price since June 2022, increasing by a full 2% due to demand from Indonesia's biodiesel sector and higher crude oil prices. However, global sunflower and rapeseed oil prices fell.