FAO Food Price Index reaches highest level since early 2023 in July

The United Nations Food and Agriculture Organization (FAO) said its benchmark Food Price Index averaged 131.1 points in July 2026, up 0.7 points or 0.6 percent from the June level of 130.3 points. This marked the highest reading since January 2023 and a 1.0 percent increase from July 2025, though the index remained 18.2 percent below its peak of March 2022, according to the FAO.

Increases in the price indices for cereals, sugar and vegetable oils more than offset declines in those for meat and dairy products, the agency reported in its monthly release dated 7 August 2026. The FAO Food Price Index tracks monthly changes in the international prices of a basket of food commodities, calculated as a trade-weighted average of five commodity group indices.

The FAO Cereal Price Index averaged 113.8 points in July, rising 3.8 points or 3.4 percent from June and standing 6.9 percent above its July 2025 level. Global wheat prices surged 5.8 percent month-on-month and were 9.9 percent higher than a year earlier. The FAO attributed this to heightened concerns over continued disruptions to Black Sea export flows and damage to export infrastructure, further compounded by the impact of recent heatwaves on crop yields in several key producing countries. World maize prices increased 3.6 percent, supported by concerns over hot and dry weather in parts of the United States Corn Belt and spillover effects from firmer energy markets amid geopolitical tensions. Sorghum prices edged higher in line with maize, while barley prices fell 1.9 percent on favourable prospects in Australia and the Black Sea region that outweighed heat-related losses in the European Union. The FAO All Rice Price Index held broadly steady.

The FAO Vegetable Oil Price Index averaged 195.7 points, up 2.0 percent from June and reaching its highest level since June 2022. Higher palm and soy oil prices drove the gain, more than offsetting lower sunflower and rapeseed oil quotations. Palm oil prices rose for a second consecutive month, underpinned by firm demand from Indonesia’s biodiesel sector and higher crude oil prices. Soy oil prices increased on robust feedstock demand in the United States and stronger global import demand.

The FAO Sugar Price Index averaged 95.0 points, climbing 5.6 percent from June though still 8.0 percent below its year-earlier level. The rise reflected concerns about persistent hot and dry weather affecting yields in the European Union and El Niño-related conditions impacting production prospects in key Asian producers, along with expectations of stronger ethanol demand in Brazil following a temporary increase in the mandatory ethanol blend in gasoline.

In contrast, the FAO Meat Price Index averaged 127.7 points, down 2.8 percent from June—the first monthly decline in 2026—though still 0.8 percent above its year-earlier level. Lower quotations for poultry, pig and bovine meat outweighed a further rise in ovine meat prices, which reached a new record high on tight exportable supplies in Oceania and sustained import demand. The FAO Dairy Price Index fell 0.7 percent to 116.2 points, extending declines since April and standing 24.8 percent below July 2025, driven by lower butter and milk powder prices that more than offset a modest recovery in cheese.

Reporting from wire services corroborated the figures. According to Reuters, the July reading was slightly above a previous multi-year high recorded in April 2026. The Wall Street Journal noted that gains in cereals, sugar and vegetable oils outweighed the declines in meat and dairy. Similar details appeared in coverage by Firstpost, which highlighted the role of extreme weather and conflicts in the Gulf and Black Sea regions.

The FAO data underscore ongoing pressures on international agricultural markets from weather extremes and geopolitical factors affecting key export routes and energy-linked demand.