Global Food Prices Reach Three-and-a-Half Year High in July

Global food prices reached their highest level in three-and-a-half years in July due to supply chain disruptions and hot, dry weather conditions. The UN Food and Agriculture Organization's (FAO) Food Price Index increased by 0.6% from the previous month to 131.1 points.

The FAO Cereal Price Index rose 3.4% month-on-month to 113.8 points, with global wheat prices increasing by 5.8% in June and 9.9% over a year earlier.

Meanwhile, the Vegetable Oil Price Index increased 3.7% to 195.7 points, reaching its highest level since June 2022, driven by palm and soybean oil price increases.

The rise in food prices was largely due to disruptions in export flows from the Black Sea region and damage to export infrastructure, as well as concerns over crop yields in the EU and potential El Nino conditions affecting major Asian producing countries.