FAO: Global food prices rose in July, cereals and sugar led the gains
FAO: Food Price Index at 131.1 in July; cereals up 3.4% and sugar up 5.6% as weather and supply concerns push costs higher.
Global food prices rose again in July, driven by extreme weather, higher energy costs and geopolitical uncertainty, the United Nations’ Food and Agriculture Organization (FAO) reported. The FAO Food Price Index reached 131.1 points in July, up 0.6 percent from June and 1 percent higher than in the same month a year earlier.
The largest monthly increase was recorded in cereals. The FAO cereals price index climbed 3.4 percent, with wheat prices jumping 5.8 percent. The agency cited concerns about possible export disruptions from the Black Sea region and heatwaves that have hurt yields in several major producing countries. Maize (corn) prices also rose, up 3.6 percent, influenced by drought in parts of the United States and rising energy costs.
Vegetable oils became more expensive as well: the vegetable oils price index increased by 2 percent, reaching its highest level since June 2022. Palm oil led the gains because of strong demand from Indonesia’s biodiesel industry and higher crude oil prices. Soybean oil also firmed, while sunflower and rapeseed oils showed slight declines.
After a brief fall in June, sugar prices climbed again in July, rising 5.6 percent. FAO attributed the increase to hot, dry conditions in Europe and weather patterns linked to El Niño that have reduced production prospects in several Asian countries.
Meat and dairy move in the opposite direction
By contrast, meat and dairy prices eased. The FAO meat price index fell 2.8 percent, marking the first monthly decline this year; lower poultry, pig and beef prices reflected weaker demand and larger global supplies. The dairy price index declined 0.7 percent overall, although cheese prices have begun to recover after a year of falls.
FAO warned that if extreme weather events and geopolitical tensions continue, pressure on global food prices could remain into the coming months. The organization also noted that, despite a long‑term downward trend in hunger, more than 645 million people still do not have enough food.
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