WORLD – Global food prices reached their highest level since November 2022 in August, driven by growing pressure on supplies of key agricultural commodities amid extreme weather conditions and trade disruptions linked to conflicts.
According to the Food and Agriculture Organization of the United Nations (FAO), the FAO Food Price Index rose to 133.3 points in August, up from 130.8 points in July, marking its highest reading since November 2022.
The increase comes as agricultural commodity markets face mounting pressures from rising temperatures and drought in Europe, alongside risks associated with extreme weather events and conflict-related disruptions to global trade.
Cereal prices reached their highest level in three years, while sugar prices hit their highest level in a year. All of the FAO's food price sub-indices also increased in August, including those for cereals, vegetable oils, sugar, meat and dairy products.
FAO Chief Economist Maximo Torero said the rise in prices signals a return of risk premiums to food markets amid growing concerns over supplies.
Despite the recent increase, global food prices remain around 17% below their historical peak recorded in March 2022, following the outbreak of the Russia-Ukraine war and the widespread disruptions it caused to global grain, energy and trade markets.
The latest development highlights the vulnerability of global food systems to the combined effects of climate, geopolitical and trade risks, while underscoring the need to strengthen the resilience of supply chains and agricultural production to ensure food and price stability.
