Global Food Prices Forecast to Surge Amid Heatwaves, Conflicts, and Soaring Energy Costs

Oxford Economics has projected that global food prices will rise by 11.8% in 2026 and 4.8% in 2027, with crops such as grains, fruit, and vegetables being hit particularly hard.

The outlook comes amid Europe's extreme heat and drought, which have harmed harvests, while growers are also grappling with steep energy and fertilizer costs, further exacerbated by conflicts in the Middle East and Ukraine.

Coceral, a Brussels-based trade group for European cereals and oilseeds, released an unusual July update, trimming its projection for the combined EU-27 and UK grain crop from 295.5 million tonnes down to 286.6 million tonnes.

Farmers are facing elevated costs from disrupted oil and other raw-material supplies, stemming from the blockade of the Strait of Hormuz linked to the Iran war.