Global Food Prices Rise as Cereals, Oils, Sugar Get Costlier in July

Global food prices rose in July as cereals, vegetable oils, and sugar became more expensive. According to the Food and Agriculture Organization (FAO) of the United Nations, the FAO Food Price Index averaged 131.1 points in July, a 0.6% increase from June and 1% above its level a year earlier.

The rise was driven by cereals, vegetable oils, and sugar, with weather conditions, energy markets, and geopolitical developments influencing prices. Cereal prices had a particularly strong month, with the FAO Cereal Price Index rising 3.4% from June to reach a level 6.9% higher than a year earlier.

Wheat prices jumped 5.8%, while maize prices rose 3.6%. Rice prices remained stable. Vegetable oils also became more expensive, with the FAO Vegetable Oil Price Index climbing 2% from June and reaching its highest level since June 2022.