World Food Prices Highest Since 2022

The FAO Food Price Index rose 1.9% to 133.3 points in August 2026, marking its second consecutive monthly increase and reaching its highest level since November 2022. The rise reflected broad-based increases across all commodity categories. Sugar prices recorded the biggest increase, jumping 11.9% to a new high since June 2025, amid growing concerns over the global sugar supply outlook in the 2026/27 season. Dairy prices went up 2.3%, driven by higher milk powder and cheese. Cereals rose 2.2% to May 2024-highs, supported by robust demand, weather-related concerns over crop prospects in key producing regions, and continued uncertainty surrounding Black Sea export flows. Meat cost increased 1% reflecting higher poultry, pig and ovine meat prices. Finally, cost for vegetable oils edged up 0.6% to its highest level since June 2022, amid higher world palm and soy oil prices, which more than offset lower quotations for sunflower and rapeseed oils.

The FAO Food Price Index rose 0.6% to 131.1 points in July 2026, the first increase in three months and reaching the highest level since January 2023. Sugar prices jumped 5.6%, amid concerns about the potential impacts of persistent hot and dry weather on crop yields in the EU and of El Niño-related weather conditions on production prospects in key producing countries in Asia. Also, cereals went up 3.4%, with wheat prices soaring 5.8% amid heightened concerns over continued disruptions to Black Sea export flows and damage to export infrastructure, as well as the impact of recent heatwaves on crop yields in several producing countries. Prices for vegetable oils increased 2% to June 2022-highs, reflecting higher palm and soy oil prices. On the other hand, meat prices decreased 2.8%, the first monthly decline in 2026, reflecting lower quotations across all meat categories except ovine meat. Dairy cost edged down 0.7% to the lowest since October 2023, led by butter and milk powders.

The FAO Food Price Index declined for a second consecutive month, easing to 130.3 in June 2026 from 130.8 in May. Cereals led the decline, with prices falling 3.5%, as wheat dropped 4.4% amid rapid harvest progress and favorable supply prospects in the Black Sea region, outweighing concerns over crop conditions in the US and Australia. Sugar prices also fell 5.7%, as lower domestic ethanol prices in Brazil encouraged mills to divert more sugarcane toward sugar production. However, concerns about the potential impact of El Niño on the 2026/27 sugar harvests in major producers such as India and Thailand helped limit the decline. Dairy prices slipped 1.5%, reaching their lowest level since 2023, with weaker prices across all major products. In contrast, meat prices edged up 0.4% to a fresh record high, driven primarily by higher poultry prices. Vegetable oil prices rose 3.8%, supported by stronger palm and rapeseed oil quotations, while sunflower oil prices remained broadly stable.