Global Food Prices Soar to Highest Level Since 2022 Amid Supply Risks
Global food prices have surged to their highest level since late 2022 due to supply risks, according to the United Nations' Food and Agriculture Organization (FAO).
The FAO's Food Price Index rose 2.5 points in August to 133.3, its highest score since November 2022. This increase is attributed to extreme heat and drought in Europe, as well as the threat of a severe El Nino weather pattern.
Climate shocks, geopolitical tensions, and disrupted trade logistics have tightened supply expectations, FAO Chief Economist Maximo Torero warned. The FAO's price benchmarks for cereals, vegetable oils, sugar, meat, and dairy all rose in August.
The FAO cut its 2026 global cereal production forecast by 3.4 million metric tonnes from a previous estimate in July to 2.980 billion tonnes. This is now 2.0 percent below 2025 levels, marking the largest annual decline since 2018.