Global Food Prices Reach Their Highest Level in More Than Three Years

Global food prices recorded another increase in July, reaching their highest level in more than three years, according to the United Nations Food and Agriculture Organization (FAO). The organization attributed the upward trend to geopolitical tensions and climate-related disruptions that have affected agricultural production in several key regions around the world.

In its monthly report, the FAO said the Food Price Index averaged 131.1 points in July 2026, up from 130.3 points in June, marking its highest level since January 2023. However, the index remained about 18.2% below the historic peak recorded in March 2022.

The increase was mainly driven by higher cereal prices, with the cereal price index rising by 3.4% month-on-month. Wheat prices climbed by around 5.8%, amid concerns over disruptions to exports from the Black Sea region and damage caused by heatwaves to crops in several producing countries.

The vegetable oil price index also continued its upward trend, rising by 2% to its highest level since June 2022. Meanwhile, some food commodities recorded price declines, with the meat price index falling by 2.8% compared with the record level reached in June.

Sugar prices, on the other hand, rose by 5.6%, driven by growing concerns over weather conditions in Europe and Asia, as well as expectations of stronger demand for ethanol in Brazil. This could reduce the amount of sugar available for export and add further pressure to global markets.