World food prices soar to highest level since late 2022
World food prices reached their highest level since late 2022 in September, according to the United Nations' Food and Agriculture Organisation (FAO). The FAO Food Price Index averaged 136.0 points, up from a revised 134.0 in August, driven by logistics disruptions and weather concerns impacting crop markets.
FAO Chief Economist Maximo Torero highlighted the pressures from disruptions in the Strait of Hormuz and the Black Sea, combined with climate shocks, affecting energy, transport, and key food commodities. He warned that sustained pressures could soon impact consumer food prices, especially in countries dependent on food and energy imports.
The FAO's sugar price index surged 6.1% from August, marking its third consecutive monthly increase due to adverse weather threatening supply in major production zones. The cereal price benchmark rose 5.1% on the month, with reduced yield prospects for US corn and disruptions in Black Sea grain trade adding to the pressure. Vegetable oil prices edged up 0.9%, driven by palm oil demand and concerns over El Nino-related production risks in Southeast Asia.
In contrast, FAO's overall meat index eased 1.1%, reflecting lower poultry prices partly linked to a drop in European Union demand due to new import rules. In a separate report, FAO kept its forecast for global cereal production in 2026 almost unchanged at 2.979 billion metric tons, 2.1% below the previous year's peak but still the second-largest harvest on record. The agency cut its forecast for world cereal trade in 2026/27 by 0.7% from last month, citing lower wheat and maize export expectations amid constrained Black Sea shipping.