Global food prices hit highest level since 2022, FAO warns of renewed market risks

Global food prices surged in August to their highest level since late 2022, as adverse weather conditions and disruptions caused by the conflicts in Iran and the Black Sea region have heightened concerns over the supply of essential crops.

The United Nations Food and Agriculture Organization (FAO) said in a statement on Friday that “agricultural markets have been shaken by sharp rises in temperatures and drought in Europe, the threat posed by the El Niño weather phenomenon, and trade disruptions due to the wars in Ukraine and Iran.”

The organization added that “these factors pushed grain prices to a three-year high and sugar to its highest level in a year. The FAO’s Food Price Index, which tracks monthly changes in a basket of globally traded food commodities, averaged 133.3 points in August, up from 130.8 points in July.”

The FAO noted that “this reading is the highest since November 2022, but remains about 17% below the unprecedented peak recorded in March 2022 after the start of the Russia-Ukraine war.” The organization warned that “the increase in global food prices in August signals a renewed risk to food markets.”

FAO Chief Economist Maximo Torero said in the statement that “the rise in global food prices in August signals a return of risk to food markets, as climate shocks, geopolitical tensions, and disruptions to trade logistics combine to narrow supply outlooks.”

All FAO indices for grains, vegetable oils, sugar, meat, and dairy products recorded notable increases in August.