Global Food Price Index Hits Three-Year High

The global food price index reached its highest level in three years, according to the Food and Agriculture Organization of the United Nations (FAO). The FAO announced that the index rose to 131.1 points in July, driven by extreme weather phenomena and armed conflicts. These factors have affected cereal quotations in global markets.

Cereal prices increased by 3.4% in July, with wheat prices rising by 5.8%. This surge was caused by fears of disruptions to exports from the Black Sea region and drought in producing areas. Vegetable oil prices also rose by 2%, reaching their highest values since June 2022.

However, meat prices decreased by 2.8% and dairy prices fell by 0.7%. Sugar prices increased by 5.6% due to unfavorable weather conditions and higher ethanol demand in Brazil.