Global Food Prices Soar on Black Sea Disruptions and Heatwaves

The Food and Agriculture Organization of the United Nations (FAO) reported a rise in global food prices in July, driven by rising cereals, sugar, and vegetable oils prices. The FAO Food Price Index stood at 131.1 points, marking a 0.6 percent increase from June.

The Cereal Price Index rose by 3.4 percent, mainly due to higher wheat prices affected by damage to export infrastructure in the Black Sea region and heatwaves on crops in several major producing countries.

The Vegetable Oil Price Index recorded a 2 percent increase, reaching its highest level since June 2022, driven by higher palm oil and soybean oil prices. In contrast, meat and dairy product prices declined by 2.8 percent and 0.7 percent respectively.