Global Food Prices Hit Three-Year High on War, Weather Disruptions
Global food prices rose to their highest since late 2022 in August, driven by adverse weather and war disruptions in the Black Sea region. The UN's Food and Agriculture Organization (FAO) reported a 2.2% monthly increase in its cereals price index, with grain prices hitting three-year highs and sugar reaching a one-year peak.
The FAO's Food Price Index, which tracks changes in internationally traded food commodities, averaged 133.3 points in August, up from July's revised reading of 130.8. This is the highest score since November 2022, but still nearly 17% below the record peak from March 2022.
FAO Chief Economist Maximo Torero warned that climate shocks, geopolitical tensions, and disrupted trade logistics are tightening supply expectations. Extreme heat and drought in Europe affected maize (corn) and sugar beet harvests, while the anticipated El Nino phenomenon fueled concerns for palm oil and sugar output in Asia.