UN Reports Highest Food Prices in Nearly Four Years

The United Nations’ Food and Agriculture Organisation (FAO) reported that world food prices climbed to their highest level in nearly four years in September. The rise was driven by logistics disruptions and weather-related concerns impacting crop markets.

The FAO Food Price Index, which measures monthly changes in international prices for a basket of food commodities, averaged 136.0 points in September, up from a revised 134.0 in August. This marks the highest reading since November 2022. The increase was fueled by fears of a severe El Niño weather pattern, which pushed international sugar prices to an 18-month high, and a war-related collapse in Black Sea trade, which sent wheat futures to a three-year peak early last month.

FAO’s benchmarks for cereal, sugar, and vegetable oil prices all rose in September, though meat and dairy quotations fell. Maximo Torero, FAO Chief Economist, warned that disruptions in the Strait of Hormuz and the Black Sea, combined with climate shocks, are putting pressure on energy, transport, and key food commodities. He noted that if these pressures persist, they will soon impact consumer food prices, particularly in food- and energy-import-dependent countries.

In a separate report, the FAO maintained its forecast for global cereal production in 2026 at nearly 2.979 billion metric tons, slightly below the previous year’s peak but still the second-largest harvest on record. However, the FAO cut its forecast for world cereal trade in 2026/27 by 0.7% from September, citing lower wheat and maize export expectations due largely to constrained Black Sea shipping routes.