Global Food Prices Soar Amid War, Extreme Weather
Global food prices have hit their highest since late 2022 due to supply chain disruptions caused by war and extreme weather. The UN's Food and Agriculture Organization (FAO) reported a 2.5% increase in its global food price index to 133.3 points in August, surpassing the previous high of November 2022.
The FAO attributed the rise in prices to several factors, including climate shocks, geopolitical tensions, and disrupted trade logistics. The agency's chief economist, Maximo Torero, warned that 'the risk premium is returning to food markets' as these converging forces tighten supply expectations.
The price benchmarks for cereals, vegetable oils, sugar, meat, and dairy all rose in August. The FAO's cereals price index surged 2.2% month-on-month to its highest since May 2024, while the sugar benchmark jumped 11.9% to its highest since June 2025.
The agency also cut its 2026 global cereal production forecast by 3.4 million metric tonnes from a previous estimate in July, citing lower output in key regions such as Brazil's centre-south region and Europe due to weather concerns.