Food Prices Soar to Two-Year High Amid Global Supply Disruptions
Global food prices reached their highest point since late 2022 in August due to supply chain disruptions and weather-related events, according to the United Nations' Food and Agriculture Organization (FAO).
The FAO's Food Price Index rose to 133.3 points in August, a 2.5% increase from July's revised reading of 130.8. This marks the highest level since November 2022.
Extreme heat and drought in Europe, along with concerns about a severe El Nino weather pattern, have affected agricultural markets. The FAO also cited war disruptions in the Black Sea as a contributing factor to grain price increases.
The agency's cereal 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 sugar benchmark jumped 11.9% to its highest since June 2025.
The FAO cut its 2026 global cereal production forecast by 3.4 million metric tons from a previous estimate, citing reduced output in Europe and Asia due to weather concerns.