Global Food Prices Hit Highest Level Since 2022 as Sugar Surges 11.9%
Global Food Prices Hit Highest Level Since 2022 as Sugar Surges 11.9%
Global food prices climbed in August to the highest level since November 2022, led by a sharp increase in sugar prices and higher quotations for cereals, dairy, meat, and vegetable oils.
The Food and Agriculture Organization of the United Nations (FAO) said its Food Price Index averaged 133.3 points in August, rising 2.5 points, or 1.9%, from its revised July level. The index was also 2.5% higher than a year earlier, although it remained 16.8% below its March 2022 record.
Sugar prices jump 11.9%
Sugar recorded the strongest monthly increase among the five commodity groups tracked by FAO.
The FAO Sugar Price Index averaged 106.4 points in August, up 11.3 points, or 11.9%, from July. It was the highest level since June 2025.
FAO linked the increase mainly to growing concerns about global sugar supplies for the 2026/27 season.
Persistent hot and dry weather has led to lower sugar-beet yield expectations in the European Union, while weather conditions associated with El Niño are affecting production prospects in major sugar-producing countries in Asia.
Lower expected sugar production in Brazil’s Center-South region also contributed to the tighter supply outlook. India’s announcement that it would allow duty-free raw sugar imports added further support to international prices.
Cereal prices also rise
The FAO Cereal Price Index increased 2.2% in August, reaching its highest level since May 2024.
Prices increased across major grains. Wheat prices rose 2.6% during the month, while maize gained 2.5%. Sorghum and barley prices increased by 3.9% and 2.6%, respectively.
FAO said stronger demand, weather-related concerns over crops, and continued uncertainty surrounding Black Sea export flows supported cereal prices.
Hot and dry weather has weakened production prospects in parts of Europe, while disruptions to Black Sea export logistics have continued to affect wheat markets. Maize prices also received support from concerns over yields in parts of the United States and the European Union, as well as strong demand from ethanol and feed sectors.
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Dairy and meat prices move higher
The FAO Dairy Price Index rose 2.3% in August, marking its first increase in four months.
Higher milk powder and cheese prices drove the increase. FAO said tighter milk supplies and hot, dry weather in several European producing regions contributed to firmer prices.
The Meat Price Index increased 1.0% from July. Higher poultry, pig, and ovine meat prices more than offset lower bovine meat quotations.
Vegetable oil prices extend gains
The FAO Vegetable Oil Price Index increased 0.6% in August to 196.9 points, marking its third consecutive monthly rise and its highest level since June 2022.
Palm and soy oil prices increased during the month, more than offsetting declines in sunflower and rapeseed oil prices.
FAO said strong global import demand and concerns about the possible effects of El Niño on production in Southeast Asia supported palm oil prices.
Global food markets face fresh supply risks
The August increase reflects a combination of supply and demand pressures across agricultural markets.
FAO pointed to adverse weather, uncertainty surrounding Black Sea trade logistics, and the wider impact of geopolitical developments as factors affecting international food commodity prices.
Despite the latest increase, the overall Food Price Index remains well below the record reached in March 2022.
The August figures show that international food markets are again facing pressure from weather-related production risks and supply uncertainty, with sugar emerging as the biggest source of the month’s increase.
Source: Food and Agriculture Organization of the United Nations (FAO)
