Global Food Prices Hit Three-and-a-Half Year High Amid Supply Chain Disruptions

Global food prices have reached their highest level in three-and-a-half years due to supply chain disruptions and extreme weather conditions. The UN Food and Agriculture Organization's (FAO) Food Price Index rose 0.6% from June to 131.1 points in July, the first time it has breached this threshold since January 2023.

The FAO Cereal Price Index increased by 3.4% month-on-month and 6.9% year-over-year to 113.8 points. This was largely driven by a 5.8% rise in global wheat prices, which are now 9.9% higher than the same time last year.

The Vegetable Oil Price Index also climbed 3.7% to 195.7 points, reaching its highest level since June 2022. Meanwhile, sugar and vegetable oil prices increased by 5.6% and 3.7%, respectively.