Global food prices rise to highest level in more than three years

Global food prices rose in July to their highest level in more than three years, driven by increases in cereal, sugar and vegetable oil prices amid concerns over global grain supplies and the impact of weather conditions on agricultural production.

Data from the United Nations Food and Agriculture Organisation (FAO) showed that the Food Price Index rose by 0.6 percent from June to 131.1 points, supported by higher prices for cereals, sugar and vegetable oils, despite declines in meat and dairy prices.

The cereal price index increased by 3.4 percent, with wheat prices rising amid concerns over disruptions to Black Sea exports and damage to export infrastructure, alongside the impact of heatwaves on crops in several producing countries. Maize prices also rose by 3.6 percent.

Customers look at seafood for sale at shops in the Torvehallerne covered market in Copenhagen, Denmark. Reuters

The vegetable oil price index climbed 2 percent, reaching its highest level since June 2022, supported by higher palm and soybean oil prices.

By contrast, the meat price index fell 2.8 percent and dairy prices declined 0.7 percent, while the sugar price index rose 5.6 percent amid concerns over the impact of weather conditions on crops.

WAM