FAO food price index reaches highest level since November 2022
Global food prices rose in August as extreme weather, conflict and trade disruptions increased concerns over staple supplies, the FAO said.
Nicosia, Cyprus. World food prices rose in August to their highest level since late 2022, driven by adverse weather and war-related disruption in the Black Sea, the United Nations’ Food and Agriculture Organization said on Friday. The FAO Food Price Index averaged 133.3 points, up from a revised 130.8 points in July.
Index increase
The August reading was the highest since November 2022, although it remained nearly 17% below the record level reached in March 2022 following Russia’s full-scale invasion of Ukraine.
The index tracks monthly changes in a basket of internationally traded food commodities. The FAO’s price benchmarks for cereals, vegetable oils, sugar, meat and dairy all increased during August.
Weather and conflict concerns
Extreme heat and drought in Europe, the prospect of a severe El Nino weather pattern, and trade disruption linked to the wars in Ukraine and Iran unsettled agricultural markets. Grain prices reached three-year highs, while sugar rose to a one-year peak.
The weather conditions in Europe affected prospects for maize, or corn, and sugar beet harvests, as well as livestock output. Expected El Nino conditions raised concerns over palm oil and sugar production in Asia, the FAO said.
Escalating attacks in the Black Sea curtailed grain shipments from Russia and Ukraine during their 4-1/2-year-old war, while the U.S.-Iran conflict strained fertiliser flows for crops.
Category movements
The FAO cereals price index rose 2.2% month-on-month to its highest level since May 2024. The vegetable oil index increased 0.6% to its highest level since June 2022.
The sugar benchmark jumped 11.9% to its highest level since June 2025, as lower production in Brazil’s key centre-south region added to weather-related concerns in Europe and Asia.
“August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations,” FAO Chief Economist Maximo Torero said.
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