Global Food Prices Hit Three-Year High Amid Climate Shocks and Geopolitical Tensions
The global food price index has hit its highest level in three years due to severe heat and drought in Europe, the El Niño weather pattern, and trade disruptions caused by wars in Ukraine and the Persian Gulf.
The Food and Agriculture Organization (FAO) reported that the FAO food price index rose to 133.3 in August from 130.8 in July, with all sub-indices including cereals, vegetable oils, sugar, meat, and dairy products increasing.
The grain price index increased by 2.2% to reach its highest level since May 2024 at 116.3 units, while the sugar price index rose by 11.9% to 106.4 points, also hitting a record high since June 2025.
FAO's chief economist Maximo Torero warned that 'the rise in global food prices in August is a warning that risk is returning to food markets: climate shocks, geopolitical tensions, and disruptions in trade logistics are reducing supply.'