Global Food Prices Surge to Highest Level Since Late 2022
Global food prices have surged in August to their highest level since late 2022. The United Nations Food and Agriculture Organization (FAO) reported a sharp rise in temperatures and drought across Europe, as well as the threat posed by the El Niño weather phenomenon. Trade disruptions caused by conflicts in the Middle East and the Black Sea region also contributed to the increase.
The FAO's Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 133.3 points in August. This is up from a revised 130.8 points in July, but still about 17 percent below its record high of March 2022.
Global wheat prices climbed 2.6 percent during August and 15 percent year-on-year. Corn prices increased 2.5 percent due to concerns over production in the United States and the European Union. Sorghum prices rose 3.9 percent, while barley prices increased 2.6 percent.