UN food price index hits three-year high in July, FAO says

ROME — Global food prices rose to their highest level in three years in July, driven by adverse weather conditions and escalating conflicts, according to the United Nations Food and Agriculture Organization (FAO). The FAO Food Price Index averaged 131.1 points last month, up from 130.3 in June. The cereal sub-index climbed 3.4 percent, with wheat prices rising 5.8 percent. FAO attributed the increase to possible disruptions to Black Sea exports and damage caused by heatwaves in major producing regions. The vegetable oil index rose 2 percent, reaching its highest level since June 2022, while sugar prices jumped 5.6 percent on concerns over weather conditions in Europe and Asia and expectations of stronger ethanol demand in Brazil. Meat prices fell 2.8 percent from a record high in June, as poultry and beef became cheaper, although sheep meat prices rose due to supply tightness in Oceania. Dairy prices declined 0.7 percent. Despite the July increase, FAO noted that the index remains 18.2 percent below its March 2022 peak, reached in the early months of the war in Ukraine.