Global Food Prices Hit Three-Year High Amid Adverse Weather and Geopolitical Tensions

The global food price index reached its highest level in three years in July due to adverse weather and geopolitical tensions.

According to the Food and Agriculture Organization of the United Nations (FAO), the FAO's Food Price Index averaged 131.1 points in July, a 0.6 percent increase from June's 130.3 points.

The main reason for the price increase is the rise in cereal prices, with the cereal price index increasing by 3.4 percent on a monthly basis in July.

The FAO also noted that concerns about potential disruptions to exports from the Black Sea region and damage to crops due to extreme heat in major producing areas have increased wheat prices by 5.8 percent.