Global food prices at highest since 2022: UN

Global food prices have surged due to the impacts of climate change, war and trade instability. The international food price index rose in August, reaching its highest level since November 2022.

The Food and Agriculture Organization (FAO) of the United Nations released the information in a report on Friday, September 4. According to a Reuters report, the FAO Food Price Index stood at 133.3 points in August, up from a revised 130.8 points in July, indicating a month-on-month increase in international food prices.

Uncertainty in the agricultural supply chain has been created by severe heatwaves and droughts in Europe, the potential impact of an El Nino in Asia, and war and trade instability surrounding Ukraine and Iran. This has affected the international food market.

FAO Chief Economist Maximo Torero said in a statement that this price increase is a warning sign of a return of risks to the market. The shock of climate change, geopolitical tensions and disruption of trade and transport systems are increasing the risk of supply shortages.

In August, the price indices for cereals, vegetable oils, sugar, meat and dairy products all rose. Adverse weather in Europe has raised concerns over negative impacts on sugar production from corn and beets, as well as livestock rearing. At the same time, concerns have grown over palm oil and sugar production in Asia due to the potential El Nino effect.

According to FAO, the cereal price index rose by 2.2 percent in August compared to the previous month, reaching its highest level since May 2024. The vegetable oil price index rose by 0.6 percent, its highest since June 2022. The sugar price index also rose significantly, increasing by 11.9 percent in August to its highest level since June 2025.

In a separate report, FAO said the global cereal production forecast for 2026 has been reduced by 3.4 million metric tonnes from the July estimate to 2.980 billion tonnes. According to this new forecast, global cereal production could fall by 2 percent compared to 2025.

FAO stated that this decline could be the largest annual drop in production since 2018. Disruptions in grain supply due to the Russia-Ukraine war and pressure on fertiliser supply due to the conflict surrounding Iran are also creating new risks for the global food market.