Global Food Prices Reach Highest Level Since 2022 as Supply Risks Mount, FAO Says
In August, global food prices rose to their highest level since November 2022, driven by bad weather, geopolitical risks, and trade uncertainty, the FAO reported.
UNITED NATIONS,ECONOMY
Global N Press
9/4/20262 min read
ROME, September 4, 2026 — Global food prices rose in August to their highest level since November 2022, the United Nations Food and Agriculture Organization (FAO) said, as adverse weather, geopolitical tensions and trade disruptions added uncertainty to global agricultural markets.
The FAO Food Price Index, which tracks monthly changes in international prices for a basket of globally traded food commodities, averaged 133.3 points in August, up 1.9% from a revised 130.8 in July and 2.5% from a year earlier. The index remained 16.8% below its record high reached in March 2022.
Weather and Geopolitical Risks
FAO said weather conditions and geopolitical developments continued to influence agricultural markets. Extreme heat and drought in parts of Europe, concerns over a potentially severe El Niño weather pattern, and disruptions linked to conflicts in Ukraine and Iran have added uncertainty to global supply conditions.
The Black Sea region remains an important corridor for international grain trade. Uncertainty surrounding exports and shipping from the region has contributed to higher prices for some cereals, while unfavorable weather in several major agricultural areas has affected production expectations.
Higher transportation and other supply-chain costs can also influence the prices of agricultural commodities as they move from major producing regions to international markets.
Grain and Sugar Prices Rise
The August increase was broad-based, with all five components of the FAO Food Price Index — cereals, vegetable oils, sugar, meat and dairy products — recording higher prices.
The FAO Cereal Price Index rose 2.2% in August, reaching its highest level since May 2024. Wheat prices increased amid continued uncertainty over Black Sea export logistics and weather-related concerns, while maize prices were supported by crop conditions and strong demand.
Sugar recorded the largest increase among the five categories. Its price index rose 11.9% from July, reaching its highest level since June 2025. FAO cited hot and dry conditions in parts of Europe and Asia, lower production expectations in Brazil, and India's decision to allow duty-free raw sugar imports among the factors affecting the market.
FAO also lowered its forecast for global cereal production in 2026 by 3.4 million tonnes to 2.98 billion tonnes, representing a decline of about 2% from the previous year. Despite the downward revision, the projected harvest would remain the second-largest on record.
Outlook for Global Food Markets
Higher international commodity prices could increase food-cost pressures in economies that rely heavily on agricultural imports. The impact on domestic consumer prices will vary depending on factors such as exchange rates, domestic production, government policies and the extent to which international prices are passed through to consumers.
The latest data do not indicate a return to the exceptional price levels recorded during the global food crisis of 2022. However, continued weather disruptions, geopolitical tensions and uncertainty surrounding major trade routes could contribute to further volatility in international food markets.
For governments and food-importing economies, developments in crop production, inventories and trade flows will remain important indicators for assessing food supply and price risks in the months ahead.
