The Food and Agriculture Organization of the United Nations (FAO) Food Price Index averaged 133.3 points in August, up 1.9 percent from July and 2.5 percent from a year earlier, reaching its highest level since the end of 2022, the FAO said Friday.
The increase was broad-based, with all five commodity group indices rising. The FAO said extreme weather, geopolitical tensions, and disruptions to trade and logistics are exacerbating supply risks for major global agricultural products.
"The FAO released its monthly food price index, as we've been warning food prices are climbing again and the weather is driving much of that. FAO says the benchmark index for world food commodity prices edged up in August as high temperatures and other weather related risks raised concern over supply," said Stephane Dujarric, spokesman for United Nations secretary-general, at a press conference at the UN Headquarters.
The FAO Sugar Price Index recorded the biggest increase, surging 11.9 percent month-on-month to its highest level since June 2025, amid growing concerns over global sugar supplies in the 2026/27 season. Hot and dry weather in the European Union and parts of Asia, lower sugar production in Brazil, and India's decision to allow duty-free raw sugar imports contributed to the rise.
The FAO Cereal Price Index rose 2.2 percent in August to its highest level since May 2024. Wheat prices increased 2.6 percent, supported by continued disruptions to Black Sea export logistics, lower production prospects in parts of Europe due to hot and dry weather, and a weaker U.S. dollar. Maize prices climbed 2.5 percent amid concerns over crop yields in parts of the United States and the European Union, strong demand from the ethanol and feed sectors, and disruptions to Ukrainian exports.
The Vegetable Oil Price Index rose 0.6 percent to its highest level since June 2022, marking its third consecutive monthly increase. The Meat Price Index increased 1.0 percent, driven by higher poultry, pig and ovine meat prices, while the Dairy Price Index rose 2.3 percent, its first increase in four months.
Despite the August rise, the FAO Food Price Index remained 16.8 percent below its record high reached in March 2022, the FAO said.
The FAO also lowered its 2026 global cereal production forecast by 3.4 million tons from its July forecast. Global cereal stocks are projected to reach 947.20 million tons at the end of 2026-2027 period, a 1.1 percent decrease from the previous forecast.
"Looking ahead, FAO forecast global cereal production this year to be a 2.98 billion metric tons. That's still the second largest harvest on record, but down 2 percent from last year," Dujarric said.
Although global grain production is expected to remain at a historically high level, the FAO warns that factors such as climate risks, regional conflicts, and transportation disruptions are increasing uncertainty in the international food market.
Global food price index hits highest level in 3 years in August: FAO
