Global Food Prices Surge on Heat and Conflict

Global food prices rose in July to their highest level in more than three years. According to the Food and Agriculture Organization of the United Nations (FAO), the increase was driven by adverse weather conditions and the escalation of military conflicts in the Persian Gulf and Black Sea regions, which pushed up crop prices.

The FAO Food Price Index, which tracks monthly changes in the prices of internationally traded food commodities, averaged 131.1 points in July. In June, it stood at 130.3 points. The July figure was the highest since January 2023.

The overall increase was driven primarily by rising grain prices. The FAO Cereal Price Index rose by 3.4% compared to June.

This was largely driven by higher wheat prices, which rose by 5.8% month-over-month.

(Reuters, Lud)