Global food prices climbed to their highest level since January 2023 in July, driven by sharp increases in sugar, cereals and vegetable oils, after extreme heat and drought ravaged European harvests.
The Food and Agriculture Organization's food price index rose 0.6% month-on-month to 131.1 points, with sugar prices jumping 5.6% and cereals up 3.4%. Wheat prices surged 5.8% while vegetable oils reached their highest point since June 2022. Meat and dairy prices declined slightly.
Conflicts in Iran and Ukraine, combined with the El Niño weather phenomenon, are pushing costs higher while reducing yields. The World Food Programme warned that 50 million people could face acute hunger by late 2027 due to El Niño. Austria is experiencing massive crop failures across cereals, potatoes and sugar beet, while U.S. Corn Belt production has also been weather-affected.