World food prices hit their highest level in August since 2022. This is according to data from the Food and Agriculture Organization of the United Nations (FAO), quoted by "Reuters".
The FAO explains that this is due to adverse weather conditions, as well as disruptions caused by the war in the Black Sea region, which have increased concerns about the supply of basic food products.
Extreme heat and drought in Europe, the threat of a strong El Niño weather phenomenon, as well as trade disruptions due to the wars in Ukraine and Iran, have destabilized agricultural markets, raising cereal prices to a three-year high and sugar prices to their highest level in a year.
The FAO food price index, which tracks monthly changes in the prices of a basket of internationally traded food products, reached an average of 133.3 points in August, marking an increase compared to a revised 130.8 points in July.
This is the highest value since November 2022, although it remains nearly 17% below the record high recorded in March 2022 after the start of the full-scale Russian invasion of Ukraine.
FAO Chief Economist Maximo Torero commented that "the increase in world food prices in August is a signal that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disruptions in trade logistics combine to limit supply expectations".
FAO reference price indices for cereals, vegetable oils, sugar, meat and dairy products increased in August.
Extreme weather conditions in Europe affected the prospects for the harvest of corn and sugar beet, as well as livestock production, while the expected "El Niño" phenomenon heightened concerns about palm oil and sugar production in Asia.
Ship strikes by Russia and Ukraine in the Black Sea have curtailed grain supplies from both sides, while tensions between the United States and Iran have hampered the flow of fertilizer for crops.
Among food categories, the FAO Cereal Price Index rose 2.2% from the previous month, reaching its highest level since May 2024, while the Vegetable Oils Index edged up 0.6%, reaching its highest level since June 2022.
The agency's benchmark sugar price jumped 11.9%, reaching its highest level since June 2025, as weaker production in the key central-southern region of the Brazil.
In a separate report, the agency lowered its forecast for global cereal production in 2026 by 3.4 million tonnes from its July estimate to 2.980 billion tonnes; This is 2.0% lower than the level recorded in 2025, the largest annual decline since 2018.
However, the projected production volume would still be the second largest in the history of the statistics.
The forecast world cereal stocks at the end of the 2026/2027 marketing year were revised down by 1.1% to 947.2 million tonnes - a level that is now only marginally above that of the previous season.
According to the FAO, the reduced estimate of feed grain stocks outweighed the upward revision for wheat, reflecting the expected build-up of stocks in Russia and Ukraine due to shipping difficulties.