Global Food Prices Surge to Three-Year High Amid Climate Shocks and Conflict

Global food prices have surged to their highest levels in three years due to climate shocks and geopolitical conflicts, according to the Food and Agriculture Organization of the United Nations (FAO). The July 2026 FAO Food Price Index averaged 131.1 points, a 0.6 percent increase from June and a 1.0 percent rise compared to the same period in 2025.

The most alarming spikes were recorded in global cereal and wheat markets. The FAO Cereal Price Index jumped by 3.4 percent from June, while global wheat prices surged by 5.8 percent in a single month.

The sharp inflation is fueled by a perfect storm of disruptions, according to Maximo Torero, the Chief Economist at the FAO. Continued military escalation in the Black Sea region has severely hampered export flows and damaged critical infrastructure.

The Kenyan economy, which imports approximately 75 percent of its annual wheat requirements, remains highly exposed. The landed cost of a tonne of wheat is projected to rise significantly at the Port of Mombasa, with millers facing higher raw material costs due to the weak Kenyan Shilling (KES) against the US dollar.