What happened
Global food prices climbed to their highest point since late 2022 in August, the UN Food and Agriculture Organization said on Friday, pointing to adverse weather and disrupted supplies from the Black Sea region.
The FAO Food Price Index averaged 133.3 points in August, up from a revised 130.8 in July, the highest since November 2022 but still nearly 17% below the record peak of March 2022. All five benchmarks – cereals, vegetable oils, sugar, meat and dairy – rose.
FAO Chief Economist Maximo Torero said the increase indicates a 'risk premium returning' to food markets, with climate shocks, geopolitical tensions and trade logistics obstacles combining to heighten expectations of tighter supply.
Why it matters
The rise shows that food markets are becoming more sensitive to overlapping shocks: extreme heat in Europe, a strengthening El Niño, and conflicts in the Black Sea region and the Middle East are all squeezing supply expectations.
With staple grain and sugar supplies under threat, import-dependent countries and consumers could face higher food costs. Still, overall price levels remain well below the records seen in 2022 after Russia's special military operation.
Key facts
The FAO Food Price Index averaged 133.3 points in August 2026, up from July's revised 130.8.
Cereal prices reached their highest since May 2024, while sugar prices jumped 11.9% month-on-month.
FAO cut its 2026 global cereal production forecast by 3.4 million tonnes to 2.98 billion tonnes.
End-2026/27 global cereal stocks were lowered by 1.1% to 947.2 million tonnes.
What to watch next
Whether Black Sea grain shipping disruptions persist and how they affect wheat stockpiles in Russia and Ukraine.
How severe El Niño becomes and whether it damages palm oil and sugar output in Asia, with WMO warning of extreme weather risks until 2027.